Kerala not a state where Adani can act unchecked: Venugopal on Vizhinjam deal

Congress general secretary K.C. Venugopal on Thursday accused the Adani Group of attempting to push through the proposed sale of a 49 per cent stake in the company operating the Vizhinjam International Seaport without properly informing the Kerala government, asserting that the state was “not like BJP-ruled states” where the conglomerate could act unchecked.

Responding to questions in New Delhi on the proposed transfer of a 49 per cent stake in Adani Vizhinjam Port Private Limited (AVPPL) to Switzerland-based Mediterranean Shipping Company (MSC), Venugopal said the Adani Group owed an explanation, particularly as the transaction was still awaiting regulatory approvals.

He said the company could not proceed with such a move by keeping the Kerala government in the dark and suggested that the group appeared to believe it could operate in Kerala in the same way it allegedly did in some BJP-ruled states. Venugopal maintained that Kerala was different and that no corporate group could assume the authority to take decisions over a strategic public asset without the state’s knowledge or consent.

The proposed transaction was announced on Tuesday by Adani Ports and Special Economic Zone (APSEZ), which said MSC, the world’s largest shipping and logistics company, would acquire a 49 per cent stake in AVPPL for around USD 1.4 billion.

APSEZ described it as the largest foreign private investment in Indian port infrastructure and said the deal would strengthen Vizhinjam’s emergence as a major transhipment hub in the Indian Ocean.

The announcement, however, triggered an immediate political backlash in Kerala. Chief minister V.D. Satheesan expressed displeasure over APSEZ publicly announcing the share transfer without informing the state government in advance. He said the concession agreement governing the port made it clear that any change in ownership structure required prior approval from the Kerala government.

Venugopal echoed that position, saying he understood that the transaction was still subject to approval from the Securities and Exchange Board of India and other authorities. In those circumstances, he said, the Adani Group should clarify the status and basis of the proposed sale.

The row has also drawn in Kerala’s opposition CPI(M), which has urged the United Democratic Front government to intervene immediately to block the proposed transfer. The party has argued that steps should be taken to ensure the port remains under the ownership and control of the state.

The controversy has sharpened the political contest over one of Kerala’s most high-profile infrastructure projects, with the proposed Adani-MSC deal now raising wider questions about ownership, transparency and the state’s role in decisions involving strategic assets.

With PTI inputs