Thiruvananthapuram: The Kerala government is yet to take a decision on the Adani Group's proposal to transfer a 49 per cent stake in Adani Vizhinjam Port Ltd (AVPPL) to Mediterranean Shipping Company (MSC), three months after the request was submitted.

In a response to an application filed under the Right to Information Act, the Ports Department said a final decision had not been taken on granting approval for the proposed share transfer.

However, the department did not respond to a specific question on whether the Adani Group's failure to inform the government in advance amounted to a breach of the agreement signed for the development and operation of Vizhinjam port. The government has informally indicated that the proposal is currently under examination by the Law Department.

The Adani Group submitted two applications to the Ports Department on July 2 and 3 seeking approval for the transfer. The government pointed out that the first application did not contain all the required information, following which the group submitted a fresh application the next day.
Both applications were examined by a high-level committee headed by the Chief Secretary before being forwarded for legal scrutiny.

MSC plans ₹13,270 cr investment
MSC, through its port operating arm Terminal Investment Limited (TIL), had proposed investing $1.397 billion (₹13,270 crore) in AVPPL.

The transaction was based on a valuation of $2.85 billion (₹27,000 crore) for AVPPL, the operator of Vizhinjam International Seaport.
The Adani Group had informed the stock exchanges about the proposed transaction and also notified the Securities and Exchange Board of India (SEBI).

However, the agreement between the Kerala government and the Adani Group for the construction and operation of Vizhinjam port treats the transfer of more than 25 per cent of the shares as a transfer of ownership.
Prior government approval is mandatory for such a transfer, according to the agreement.

Govt informed after preliminary agreement
The controversy arose over the Adani Group initiating the share transfer process without first seeking the government's approval.

The government was informed only after a preliminary agreement for the share transfer was signed on June 29.
The state government had conveyed its displeasure to the Adani Group over the matter.