Congress MP Shashi Tharoor on Friday recalled that the Vizhinjam port project had failed to secure bidders multiple times under both UPA and NDA governments due to concerns over possible involvement of Chinese companies, amid the controversy over Adani Group's proposed sale of a 49% stake to Swiss shipping major MSC.
Tharoor calls for government concurrence on stake transfer
Speaking to reporters in Thiruvananthapuram, Tharoor said any stake transfer in the port, which is a strategic national asset, requires the concurrence of both the central and Kerala governments. "You might remember that before the tender for the project was approved, 3-4 times the bids had failed due to the possibility of involvement of Chinese companies in the process. As a result, both the Congress and BJP governments at the Centre had not given approval. So, no final decision should be taken without the concurrence of the governments. That is my view also," he said.
Tharoor emphasized that while no one is against the growth and development of the port, it must proceed in accordance with the concession agreement entered into with the state government. "Only after both the central and state governments grant their respective clearances can such a sale or transfer of shares be approved. That is the usual legal procedure. That is what both Chief Minister V D Satheesan and opposition leader Pinarayi Vijayan have said," he added.
Concerns over MSC's exclusive use of the port
The Thiruvananthapuram MP further stated that the state has a vested interest in the port as it provided the land and the facility was built with the intention of serving all shipping companies globally. "There should not be a situation in the future that only the ships of MSC can come here. We want it to continue as a multi-shipping line port," he said. Tharoor clarified that no one is being opposed and growth is necessary, but it must comply with the law and respect the stipulations in the concession agreement.
State Industries Minister P K Kunhalikutty also weighed in, saying that no one should jump to conclusions based merely on controversies. He noted that Chief Minister Satheesan has already made it clear that the Adani group had not informed the government about the share transfer. "The CM also said that all aspects regarding the development will be examined, including whether the transaction would be harmful or beneficial to the state," Kunhalikutty told reporters earlier in the day.
Government displeasure over lack of communication
On Thursday, Chief Minister V D Satheesan expressed his administration's displeasure to Adani Ports and Special Economic Zone (APSEZ) over its announcement of transferring 49% shares in Vizhinjam port to MSC without informing the government. APSEZ had announced on Tuesday that MSC, the world's largest shipping and logistics group, would acquire a 49% stake in Adani Vizhinjam Port Private Limited (AVPPL) for about USD 1.4 billion. Satheesan stated that the government's stand going forward will be decided after examining the applicable conditions, restrictions, and instructions in the concession agreement.
Leader of Opposition Pinarayi Vijayan questioned how the Adani group could "dare" to enter into an agreement to sell its 49% stake without the mandatory prior permission of the state government. "How could they dare to do that? The chief minister needs to clarify this as he also holds the charge of the Ports Department. Initiation of the share transfer is illegal and in violation of the agreement with the government. The CM also needs to clarify what steps the government proposes to take in light of this move by Adani," Vijayan contended during a press conference.
AICC General Secretary K C Venugopal also said on Thursday that the Adani Group could not transfer a 49% stake in the company operating the Vizhinjam International Seaport "by keeping the Kerala government in the dark." The share transfer issue was raised in the Kerala Assembly on Wednesday, and Satheesan claimed that Adani Ports has not communicated anything to the state government regarding the matter.
