Kerala chief minister V.D. Satheesan made it clear that a state government approval is required for the share transfer deal in which Mediterranean Shipping Company, the world’s largest container firm, proposes to acquire a 49 per cent stake in Adani Vizhinjam Port, the operating company for the Vizhinjam International Seaport.
Implying that Adani Ports had not bothered to seek approval from the state government, the chief minister said he learned of the proposed share transfer through media reports.
Replying to a question posed by three CPM MLAs during the question hour, Satheesan said: “According to clause 5(3) of the concession agreement, it is mandatory for Adani Ports to get prior approval of the state government regarding any transfer of shares. Without the approval, the company cannot transfer its shares on its own. Otherwise, it would not have any legal validity.”
Satheesan said that the Congress-led United Democratic Front government would assess the proposal on five parameters — national security, public interest, fair competition, investment and the port’s long-term development. “There must not be any monopoly where only one company has exclusive access to the Vizhinjam Port, which is a common user facility. Therein lies the role of the Kerala government to ensure that such a monopoly does not arise,” he said.
A source at Adani Ports told The Telegraph they have informed Sebi and publicised it in the media.
“Adani’s statement clearly states that the agreement is subject to all regulatory approvals. Now we will officially inform the government of Kerala and the Centre. That’s the rule which we can’t violate. Once our proposal comes before the state, it will be taken up by the cabinet and the law department. According to the MoU between the Kerala government and Adani Ports, we can sell 74 per cent shares,” the source said.