Kerala objects to Adani Ports's 49% Vizhinjam sale to MSC
Kerala is not happy about Adani Ports's plan to sell a 49% stake in the Vizhinjam port to Swiss shipping giant MSC for $1.4 billion, which would be the largest foreign private investment ever in an Indian port if it goes through.
The state says the 2015 agreement means it should have been asked before any major ownership change, but claims that step was skipped.
25% sale needs Kerala approval
The rules say Adani needs state approval for selling 25% or more of its stake, mainly because of public interest and security concerns.
Kerala officials are also uneasy about MSC, being the world's biggest container shipping company, possibly dominating Vizhinjam and breaking the port's "common-user" promise of non-discriminatory access.
Adani defends sale, Kerala reviews
Adani argues the contract allows this sale since it is only year two of operations, but Kerala has set up a committee to review if everything checks out and keeps things fair at India's first deep-water container transshipment port.