CPM's MV Govindan alleges move to privatise Vizhinjam port, demands to halt Adani-MSC share transfer

Thrissur: CPM state secretary M V Govindan on Sunday alleged that attempts were being made to facilitate the privatisation of the Vizhinjam International Seaport and claimed that any transfer of more than 25% of the project's shares would require the prior approval of the Kerala government under the existing concession agreement.

Addressing a press conference in Thrissur, Govindan alleged that V D Satheesan, before becoming chief minister, had held meetings with individuals connected to the Sabarimala issue and representatives of the Adani Group, claiming that the details of those understandings are now emerging. However, he did not present evidence to substantiate the allegation.

Govindan said the state government's policy documents, including the White Paper and the Budget, indicated a broader move towards privatisation of Kerala's natural resources. He alleged that the proposed "Mission Samudra" initiative was aimed at handing over the state's marine resources and strategic infrastructure to corporate interests, and said the Vizhinjam port project should be viewed in that context.

The CPM leader, however, acknowledged the rapid growth of the Vizhinjam port, describing it as one of the world's emerging transhipment hubs. He noted that Mediterranean Shipping Company (MSC), one of the world's largest container shipping companies, had shown significant interest in the port and claimed that no other port had handled such a large number of MSC vessels in such a short span.

Govindan said the Kerala government had invested nearly ₹6,000 crore in the project, while the Adani Group had invested around ₹2,497 crore. He added that the state's investment, largely through KIIFB, along with Vizhinjam's natural geographical advantages, had made the port strategically important.

Referring to the concession agreement signed during the UDF government led by Oommen Chandy, Govindan said the agreement provides that the Kerala government would begin receiving a share of the port's operational revenue only from 2035 onwards. He also claimed that the agreement stipulates that any transfer of more than 25% of the project's shares requires prior approval from the state government and that the government has the authority to terminate the agreement if this condition is violated.

Govindan alleged that Adani had approached the Securities and Exchange Board of India (SEBI) seeking approval for a proposed share transaction involving MSC without obtaining the Kerala government's consent. He claimed that an application submitted to SEBI had become public and alleged that the move violated both the concession agreement and the law.

Questioning Chief Minister VD Satheesan's response, Govindan said the Chief Minister had stated in the Assembly that he came to know about the matter through media reports. He said such a claim raised serious questions about the government's handling of the issue.

The CPM state secretary also referred to discussions within the INDIA bloc, claiming that Congress leader Rahul Gandhi had clarified that the original Vizhinjam agreement with Adani had been signed by the UDF government under Oommen Chandy and not by the Left government.

Govindan alleged that there was a "major understanding" involving the Chief Minister, the Adani Group and MSC, and demanded that the proposed share transfer be stopped. If the terms of the agreement had been violated, he said, the state government should consider cancelling the agreement.

He also alleged that the Kerala government was unwilling to oppose the proposed transaction and warned that the people of Kerala would resist any attempt to privatise the state's strategic assets and hand them over to multinational shipping companies.