Kerala government, Adani Group trying to resolve differences over stake sale in Vizhinjam port

Ship at Vizhinjam International Seaport

The Kerala government and Adani Group are trying to mend fences after the former conveyed to the company its strong displeasure at being kept in the dark about the proposed stake sale in Adani Vizhinjam Port Private Limited (AVPPL). As part of this effort, Aswani Gupta, CEO, Adani Ports and Special Economic Zone (APSEZ), said the company wants to take Vizhinjam port to the next level only with the support of the Kerala government along with the support of the Union government.

Allaying concerns about the shipping company’s monopoly, Mr Gupta said the partnership with Switzerland’s Mediterranean Shipping Company (MSC) did not mean it would have exclusivity at the port. The port is and will continue to be open to all partners from around the world to bring in new business in accordance with the concession agreement. He also added that the signing of the binding agreement with MSC is only the beginning of the process and that all approvals, including those from the Competition Commission of India (CCI) and the Kerala government, must be obtained before the stake transfer can be completed.

The state is also exploring the possibility of setting the terms of the stake sale to protect the state’s interests, either by entering into a contract similar to the one it signed with APSEZ to settle arbitration proceedings after the company missed the project’s 2019 deadline, or by incorporating new terms into the existing contract.

Legal assistance requested

An empowered committee headed by the chief secretary is examining the detailed letter submitted by the Adani group regarding the stake sale. In addition, the state reportedly sought legal advice from the Solicitor General.

APSEZ went ahead with its decision to sell 49% stake in AVPPL – the Concessionaire and Operating Company of Kerala’s Vizhinjam International Seaport – to MSC without informing the state government. This was despite the concession agreement stipulating that the concessionaire would not allow any change of ownership without the prior approval of the state government.

MSC will acquire a 49% stake in Vizhinjam port company for $1.397 billion (about ₹13,220 crore), according to an announcement by Adani Group. MSC will make the investment through its container terminal operations and investment arm, TiL.

Published – 06 Jul 2026 20:36 IST