Adani-MSC Vizhinjam deal: Kerala Cabinet to set up empowered panel to study if agreement is in State’s interests
The Kerala Cabinet on Wednesday decided to entrust an Empowered Committee headed by the Chief Secretary with studying and submitting a report on whether the
The Kerala Cabinet on Wednesday decided to entrust an Empowered Committee headed by the Chief Secretary with studying and submitting a report on whether the proposal by the Adani Group to divest its 49% stake in Adani Vizhinjam Port Private Limited (AVPPL), the concessionaire and operating company of the Vizhinjam International Seaport, is in the State’s interests. Addressing a press conference after the Cabinet meeting, Chief Minister V.D. Satheesan said the State government “will not take any decision which goes against Kerala’s interests.” Hitting back at the Opposition Left Democratic Front (LDF), Mr. Satheesan said that it was the Deshabhimani newspaper, the CPI(M)’s mouthpiece, which first published a report on the plans for the transfer of AVPPL’S shares to Switzerland-based Mediterranean Shipping Company (MSC) Group. “On June 5, Deshabhimani published a report claiming that the MSC Group’s terminal would up at Vizhinjam and that the discussions were progressing.
The Managing Director of Vizhinjam International Seaport, whom our government appointed, took charge only on June 11. So, what was the source of this news published by Deshabhimani? It was clearly the previous government. Deshabhimani also published another report on July 1, in which it attributed the deal with the MSC Group as a result of the far-sightedness of the LDF government. The LDF has been very much aware of this proposed deal, but it is now attempting to shift the blame on us,” said Mr.Satheesan. Satheesan reiterated that the UDF government was unaware of the proposal share transfer until the media reports came out. “However, the government later came to know that Adani had been holding discussions with the MSC Group for the past one year.
On the same evening as the Adani Group sent a letter to the Securities and Exchange Board of India (SEBI) regarding the proposed deal, the government communicated its displeasure to the Adani Group, following which it submitted a request seeking the government’s prior permission,” he said. “The Leader of the Opposition (Pinarayi Vijayan) made certain claims in the Assembly without even reading the concessionaire agreement. The allegation that the MSC Group can implement a monopoly at the port is false as the original agreement stipulates that the port should have a common user facility. There has been no breach of contract yet, as no share transfer has taken place. Even if the State government clears the share transfer, it can take place only after the clearance of the Union Home and Shipping ministries,” he said.
The BriefWire