Satheesan’s Double Standards Exposed; CM’s Assembly Reply Reveals Prior Knowledge of Adani’s Vizhinjam Stake Sale

Thiruvananthapuram: The state government’s earlier claim that it had learnt about the Adani Group’s stake sale in Vizhinjam port only through media reports has come under question after Chief Minister V D Satheesan confirmed in a written reply in the Assembly that the company had approached the government for prior approval. The disclosure indicates that the government had been aware of the proposed transaction from the outset.

Adani Vizhinjam Port Private Limited, the operator of Vizhinjam port, decided to sell a 49 per cent stake to Switzerland-based MSC Group in a deal valued at around Rs 13,000 crore. Under the concession agreement, prior approval from the state government is mandatory for any transfer of more than 25 per cent of the shares. However, when the issue triggered controversy in July, the government had maintained that it had no prior knowledge of the transaction and learnt about it through media reports.

The government’s written reply to questions raised by LDF MLAs G Stephen, V K Sanoj, Xavier Chittilappilly and K V Sumesh has now brought the discrepancy to light. Asked whether the Adani Group had attempted to sell its shares without prior approval from the government, the Chief Minister replied, “No.” He also acknowledged that the Adani Group had formally applied to the government for approval of the stake transfer and that the application was under consideration.

However, it remains unclear what action the government has taken over the alleged breach of the concession agreement arising from the announcement of the stake sale without prior state approval.

The disclosure lends support to concerns raised by the Opposition from the beginning that the transfer of shares by the Adani Group was being pursued with the government’s knowledge. Union Ports, Shipping and Waterways Minister Sarbananda Sonowal had also told the Lok Sabha earlier that the state government was aware of the proposed stake sale.

Opposition Leader Pinarayi Vijayan had urged that the transaction should not undermine the objective of developing Vizhinjam as a port that could be used equally by multiple shipping companies. He had also criticised the stake sale as a pre-arranged business deal.

Former Finance Minister Thomas Isaac had called for an examination of MSC’s interests in other ports, citing Clause 5(9) of the concession agreement.