Kerala Chief Minister V D Satheesan, who earlier announced that no prior approval of the state government was sought by Adani Port Limited for its deal with a foreign shipping company in Vizhinjam port, on Wednesday, July 8, alleged that the previous Left Front Government was aware of the move.
Quoting a month-old report of Communist Party of India (Marxist)-owned daily Deshabhimani, the CM alleged that the LDF government was the source of the article which covered the impending deal. The LDF retorted saying that the relevant question is whether the state government had given prior approval for the deal and if not, had it taken steps to challenge the breach of contract.
Speaking to the media after the Cabinet meeting, the Chief Minister said that Deshabhimani had reported about the deal between Adani Port and Mediterranean Shipping Company (MSC) on June 5.
“How did this news come? What is their source? The report also says that representatives of MSC had attended the Vizhinjam conclave organised by the LDF government,” the CM asked, adding that it came before the UDF government appointed a managing director for the port. He further said that Adani Port has given a letter seeking approval for the deal after the state government expressed its displeasure over the developments.
The CM also said that the Cabinet discussed the letter sent by Adani ports seeking approval for its deal with MSC. “A final decision will be taken only after a Chief Secretary-headed empowered committee conducts a detailed review of the agreement and takes into consideration the interests of the state,” he said.
LDF leader and former minister P Rajeev said that Deshabhimani was not the first newspaper to report about the Adani-MSC deal. He added that the question was not whether there were talks between the two companies, but whether a prior approval was sought from the government ahead of the deal.
“As per letter sent by Adani Port to SEBI, the agreement was signed on June 29. The CM was trying to mislead by changing focus into trivial things,” Rajeev said.
Meanwhile, Leader of Opposition Pinarayi Vijayan sent a letter to the Chief Minister seeking a comprehensive examination into the Adani Port’s plan to sell 49 % stake to MSC. Vijayan sought a clarity on whether the state government has received a letter seeking approval from Adani Port.
He asked how the state government expressed its displeasure as there was no such move done through the Ports Department or through the Chief Secretary. He also sought clarity regarding how the new agreement would affect the concessionaire’s agreement with the state government or the clause enabling handing over the project to the state government after designated time etc.
As per a media statement issued by Adani Port on June 30, Terminal Investment Limited, terminal arm of MSC, would invest 49 % stake in the port. The statement said that an agreement was signed between Adani Ports and MSC in this regard. “The transaction is subject to customary approval, including regulatory ones,” it added.
This announcement became a major political controversy after the CM stated that the Adani Ports had not sought any prior approval. The CM added that the government expressed its displeasure over the move. Opposition parties alleged that Adani Ports had violated concessionaire agreement by not seeking prior approval for the deal.