Thiruvananthapuram | Kerala Chief Minister V D Satheesan on Thursday expressed his administration's displeasure to APSEZ over its announcement of transferring 49 per cent shares in Vizhinjam port to Switzerland-based shipping company MSC without informing the government.
A statement issued by his office said that Satheesan conveyed the government's displeasure to Adani Ports and Special Economic Zone (APSEZ), which on Tuesday had announced that the Mediterranean Shipping Company (MSC), the world's largest shipping and logistics group, would acquire a 49 per cent stake in Adani Vizhinjam Port Private Limited (AVPPL) for about USD 1.4 billion.
The statement further said that the share structure of AVPPL, the concessionaire of Vizhinjam port, can only be changed with the state government's permission.
It also said that the government's stand going forward will be decided after examining the applicable conditions, restrictions and instructions in the concession agreement.
"The government's goal is to fully protect the interests of the state and realise the full potential of the Vizhinjam Port as a globally competitive transhipment hub," the statement said.
The statement comes hours after Leader of Opposition in the state assembly Pinarayi Vijayan questioned how the Adani group could "dare" to enter into an agreement to sell its 49 per cent stake in the Vizhinjam international seaport without the mandatory prior permission of the state government.
"How could they dare to do that? The chief minister needs to clarify this as he also holds the charge of the Ports Department".
"Initiation of the share transfer is illegal and in violation of the agreement with the government. The CM also needs to clarify what steps the government proposes to take in light of this move by Adani," the former chief minister contended during a press conference here in the morning.
The share transfer issue was raised in the Kerala Assembly a day ago, and Satheesan had claimed that Adani Ports has not communicated anything to the state government regarding the matter.
APSEZ has described the USD 2.85-billion valuation as the largest foreign private investment in Indian port infrastructure and said the partnership would strengthen Vizhinjam's position as a major transhipment hub in the Indian Ocean.
Thiruvananthapuram | The opposition CPI(M) on Thursday urged the UDF government to take immediate steps to prevent the proposed transfer of a 49 per cent stake in AVPPL, the concessionaire of Vizhinjam port, to Switzerland-based MSC, saying "steps must be taken to ensure that the port remains under the ownership of the state".
In a statement, the CPI(M) state secretariat said documents disclosed by the Adani Group to the stock exchange indicated that the company intended to transfer the stake to Mediterranean Shipping Company (MSC), describing it as a move to operate the Vizhinjam port as a joint venture between the two companies.
The party said, "steps must be taken to ensure that the port remains under the ownership of the state".
"Under the terms of the agreement, prior government approval is required for the transfer of more than 25 per cent of the shares. However, it is understood that the Adani Group is proceeding with the transfer by bypassing this provision," the CPI(M) said.
The party also warned that if the proposed transaction went through, the port could effectively be used only by MSC vessels.
"If the transfer becomes a reality, the port could effectively be dedicated exclusively to MSC vessels, thereby undermining competition in the sector. If other shipping companies are denied access, it would be detrimental to the interests of the state," the statement said.
The CPI(M) further questioned the claim that the chief minister came to know about the proposal only through media reports and said the government was duty-bound to protect the state's interests under the concession agreement.
"Under the contractual provisions, the government is obligated to take steps that safeguard the interests of the state," it said, adding that "failing to discharge this responsibility and adopting an evasive approach would be harmful to Kerala's interests".
The statement came hours after Kerala Chief Minister V D Satheesan expressed his administration's displeasure to Adani Ports and Special Economic Zone (APSEZ) over its announcement of transferring 49 per cent shares in Vizhinjam port to MSC without informing the government.
Satheesan said no change in ownership could take place without the Kerala government's prior approval, pointing to the concession agreement, which requires the state's consent for any ownership change.
On Tuesday, APSEZ announced that Switzerland-based MSC, the world's largest shipping and logistics group, would acquire a 49 per cent stake in AVPPL for about USD 1.4 billion.
The company has described the deal as the largest foreign private investment in Indian port infrastructure, saying it would strengthen Vizhinjam's position as a major transhipment hub in the Indian Ocean.
New Delhi/Thiruvananthapuram | AICC General Secretary K C Venugopal on Thursday said the Adani Group could not transfer a 49 per cent stake in the company operating the Vizhinjam International Seaport "by keeping the Kerala government in the dark", saying the state was "not like BJP-ruled states where the group acts as a superpower."
Reacting to a query on the proposed sale of a 49 per cent stake in Adani Vizhinjam Port Private Limited (AVPPL) to Switzerland-based Mediterranean Shipping Company (MSC), Venugopal told reporters in New Delhi that the Adani Group should explain the transaction as it was still awaiting regulatory approvals.
"The Adani Group cannot carry out such activities by keeping the Kerala government in the dark. Kerala is not like BJP-ruled states where the Adani Group acts as a superpower," he said.
Venugopal said he had found that the transaction was still awaiting SEBI approval and other necessary clearances, and therefore, the Adani Group should respond to the issue.
"Is Adani our super government? Do they think they can carry out such actions by keeping the Kerala government in the dark? Is this a BJP-ruled state? There is criticism that in some BJP-ruled states, it is Adani's decisions that prevail.
"But Kerala is not like that. Here, the Adani Group is not a superpower. Things do not happen simply because Adani decides they should. Did the Adani Group assume that the situation in Kerala is the same?", the senior Congress leader said.
On Tuesday, Adani Ports and Special Economic Zone (APSEZ) announced that Switzerland-based MSC, the world's largest shipping and logistics group, would acquire a 49 per cent stake in AVPPL for about USD 1.4 billion.
The company has described the deal as the largest foreign private investment in Indian port infrastructure, saying it would strengthen Vizhinjam's position as a major transhipment hub in the Indian Ocean.
The statement came hours after Kerala Chief Minister V D Satheesan expressed his administration's displeasure to APSEZ over its announcement of transferring 49 per cent shares in Vizhinjam port to MSC without informing the government.
Satheesan said no change in ownership could take place without the Kerala government's prior approval, pointing to the concession agreement, which requires the state's consent for any ownership change.
Kerala's opposition CPI(M) has urged the UDF government to take immediate steps to prevent the proposed transfer of a 49 per cent stake in AVPPL to Switzerland-based MSC, saying "steps must be taken to ensure that the port remains under the ownership of the state."