The Kerala government has officially conveyed its displeasure to the Adani group over the latter's decision to enter into an agreement to sell stakes in the Vizhinjam port without obtaining the state government's approval. Kerala Chief Minister V. D. Satheesan communicated the state's strong objection to the Adani group, as the Opposition stepped up its attack on the issue.
Government's Stand and Opposition Pressure
According to sources, the state government views the stake sale as a violation of the concession agreement signed with the Adani group for the development of the Vizhinjam port. The agreement requires prior consent from the government for any transfer of shares. The Opposition has seized upon the matter, accusing the government of failing to protect the state's interests. The Congress-led UDF has demanded a thorough investigation and sought details of the deal.
Details of the Stake Sale
The Adani group, which holds a 98% stake in the Vizhinjam International Seaport Limited, reportedly entered into an agreement to sell a 51% stake to a foreign entity. However, no official confirmation has been provided by the Adani group regarding the buyer or the transaction value. The state government has sought an explanation from the company and warned of legal action if the sale proceeds without proper clearance.
Impact on the Project
The Vizhinjam port, a flagship project of the Kerala government, is being developed as a deep-water transshipment hub. The project has faced multiple delays and controversies, and the latest development could further stall its progress. The government has assured that it will take all necessary steps to ensure the project's completion and protect the state's rights.
