Kerala Opposition Questions 49% Stake Sale in Vizhinjam Port Project Without Government Nod

A fresh political controversy has erupted in Kerala over the Vizhinjam International Seaport project , with Leader of Opposition Pinarayi Vijayan questioning the alleged transfer of a 49 per cent stake in Adani Vizhinjam Port Private Limited (AVPPL) to Switzerland-based Mediterranean Shipping Company (MSC) without prior approval from the state government.

The Vizhinjam port is being developed under the Left Democratic Front (LDF) government led by then Chief Minister Pinarayi Vijayan , with the state Ports Department overseeing the project’s concession agreement with the Adani group.

Vijayan on Thursday alleged that the reported transaction violates the terms of the agreement between the government and the concessionaire. He said the pact permits the sale of only up to 25 per cent stake with mandatory prior permission of the state , whereas the current deal involves a 49 per cent stake worth over ₹13,000 crore .

“How could they dare to proceed without government approval?” Vijayan asked, terming the move “illegal and in violation of the agreement” . He sought clarification from the Chief Minister, who also holds the charge of the Ports Department, on what action the government intends to take. He further warned that the transaction could result in loss of revenue to the state and potentially lead to greater control of the port by MSC , raising concerns of monopolisation.

Vijayan also argued that attempts were being made to project the deal as a major foreign investment, while it may primarily serve corporate profit interests. The issue was also raised in the Kerala Assembly earlier, where the government stated that it had not received any formal communication from Adani Ports and Special Economic Zone (APSEZ) regarding the share transfer. Officials reiterated that the port must remain accessible on a non-discriminatory basis to all shipping and logistics operators.

Meanwhile, APSEZ has described the transaction reportedly valued at $1.4 billion as part of the largest foreign private investment in India’s port infrastructure, saying it would strengthen Vizhinjam’s position as a key transshipment hub in the Indian Ocean region . The controversy has now placed the high-profile port project at the centre of a political and regulatory debate over contract compliance, state oversight, and strategic control of infrastructure assets.