Stake sale at Vizhinjam: empowered panel may take 3-4 months to submit its report
An empowered committee is reviewing a controversial 49% stake sale in Adani Vizhinjam Port Private Ltd. to Terminal Investment Ltd. The state government is proceeding cautiously to ensure compliance with concession agreements and national security interests.
Why it matters
The oversight of critical infrastructure projects involving private entities is a major point of public interest and regulatory scrutiny.
It has been around two weeks since the Cabinet directed the empowered committee to study the proposed 49% stake sale in Adani Vizhinjam Port Private Ltd. (AVPPL), the concessionaire operating the Vizhinjam deep-water transshipment port, to Terminal Investment Ltd. (TiL), the port operating arm of the Mediterranean Shipping Company (MSC) Group. However, the committee, headed by the Chief Secretary, has yet to examine the nuances of the stake sale or complete the exercise.
The State government is moving cautiously after the proposed stake sale courted controversy, with the port operator allegedly violating Clause 5.3.1 of the concession agreement, which stipulates that “the Concessionaire shall not undertake or permit any ‘Change in Ownership’ of the port company, except with the prior approval of the Authority.”
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