Kerala vets Vizhinjam Port deal over monopoly and security concerns

The Kerala government has initiated a strict multi-layered regulatory review of the Adani Group’s proposal to sell a 49% stake in Adani Vizhinjam Port Private Limited (AVPPL) to the MSC Group’s TiL for approximately $1.4 billion (`13,270 crore). The transaction—which represents the largest foreign private investment in an Indian port infrastructure asset—initially sparked friction in the Kerala Legislative Assembly. Chief Minister Mr V. D. Satheesan pointed out that under the tripartite concession agreement, any ownership transfer of 25% or more requires mandatory prior approval from the state government. Following the legislative pushback, the Adani Group reportedly formally submitted the divestment proposal to the State Ports Department. The proposal has now been forwarded to the Law Department for comprehensive legal vetting before undergoing a review by a high-power committee led by the Chief Secretary and facing the final State Cabinet decision, as per a report.

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