This comes after CM Satheesan asked Opposition leader Pinarayi Vijayan to clarify whether Adani Ports had made any moves linked to the stake sale plans during the previous LDF govt's tenure.

This comes after CM Satheesan asked Opposition leader Pinarayi Vijayan to clarify whether Adani Ports had made any moves linked to the stake sale plans during the previous LDF govt's tenure.

This comes after CM Satheesan asked Opposition leader Pinarayi Vijayan to clarify whether Adani Ports had made any moves linked to the stake sale plans during the previous LDF govt's tenure.

In a fresh twist in the row over the Vizhinjam Port-Mediterranean Shipping Company (MSC) stake sale, remarks by minister Shibu Baby John have led to cracks in the ruling UDF's stance on the proposed $1.397 billion deal.

Speaking to reporters in Delhi earlier this week, John claimed that there was nothing wrong with Adani Ports' proposed move, as discussions on it had been going on "for a long time".

"We all knew about it even before the Assembly elections," he added, directly contradicting CM V.D. Satheesan's July 1 remarks in the Assembly that the Kerala government had not been informed of the proposed stake sale to MSC-arm Terminal Investment Limited (TiL).

The CM had also pointed out on July 1 that the special purpose vehicle (SPV) for the transshipment port, Adani Vizhinjam Port Private Limited (AVPPL), was only a concessionaire, due to which any stake sale of more than 25 per cent would have to be approved by the state government.

This came after Adani Ports' SEBI filing on June 29, in which it had in which it had said that a "definitive agreement" had been signed with MSC for the stake sale.

Satheesan on July 10 asked Leader of Opposition Pinarayi Vijayan to clarify whether Adani Ports had made any moves linked to the stake sale plans during the latter's time as CM in the previous CPI(M)-led LDF government.

Questioning whether MSC officials attended the 2025 Vizhinjam Conclave organised by the Vijayan-led government, Saatheesan also pointed out two alleged articles by the CPI(M)-linked media outlet, Deshabhimani, that hinted at Vijayan having prior knowledge of the developments.

While the first was a June 5 report allegedly stating that an 'MSC terminal' would be built at Vizhinjam, while the second was a July 1 report that claimed the Adani Ports stake sale was an achievement of the foresight of the LDF government.

He had been responding to Vijayan's earlier warnings against the deal leading to MSC vessels enjoying a "monopoly" over operations at the Thiruvananthapuram-based port.

Later, on July 4, Vijayan also wrote to SEBI seeking intervention into the move, alleging that it violated the concession agreement with the Kerala government. 

Indeed, the proposal is currently making its way through various levels of the state government.

Even if it obtains approval from the State Cabinet, the deal cannot go forward without approval from various levels of the Centre, which will have to make a number of decisions on the stake sale, especially on matters related to foreign investment and security.

If the Centre too approves the stake sale, a final Memorandum of Understanding (MoU) can be signed, which will clear the way for the divestment.

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