Kerala Chief Minister supports Adani Port Express
By Unni Krishnan and Aryan Gupta
India’s southern state of Kerala is committed to expanding Adani Group’s ambitious deepwater port despite objections to a proposed stake sale, Chief Minister VD Satheesan said, signaling a soft stance towards a project that could reshape the country’s role in global shipping.
“It has to be expanded. Even beyond the port.” Satheesan told Bloomberg News in an interview on Tuesday. He said the state is acquiring additional land to support the infrastructure. “We are also offering properties for container stations.”
The comments come days after Satheesan raised objections to MSC Mediterranean Shipping Co SA’s plan to invest $1.4 billion in the project. If approved, the deal will give the Swiss shipping company a 49% stake in the port operated by Adani Ports and Special Economic Zone Ltd in Vizhinjam.
Satheesan said Kerala’s objection was limited to submitting the stake sale proposal to India’s market regulator without prior consultation. A panel led by the state’s top bureaucrat is reviewing the proposal to ensure Kerala’s interests are protected and assessing whether the transaction could give MSC excessive control over the project, he said.
“There is no dispute,” Satheesan said. “We are inviting investment.”
A representative for Adani Group had no immediate comment.
Vizhinjam is one of India’s most ambitious port developments. The deepwater transshipment hub off India’s southernmost tip is being expanded to a capacity of 5.7 million twenty-foot equivalent units (TEU) from 1.6 million TEU when it becomes operational in 2024. This will help attract the world’s largest container ships and position India firmly on key east-west shipping routes, enabling it to win traffic currently destined for Colombo, Dubai or Singapore.
The project has also been supported by Prime Minister Narendra Modi, who said that Vizhinjam will create new economic opportunities for India. Asia’s third-largest economy currently depends on foreign ports for about 75% of its transported cargo.
Kerala’s location close to one of the world’s busiest maritime trade routes gives Vizhinjam a strategic advantage, while its natural depth and advanced infrastructure are designed to attract ultra-large container ships that previously bypassed Indian ports.
Vizhinjam is part of Kerala’s broader effort to attract private investment and shed its reputation as a state where land acquisition hurdles and labor issues have discouraged businesses.
Satheesan said the government is trying to create a more business-friendly environment by expediting approvals and providing more support to investors. Tata Group has also sought approval to invest $1 billion in shipbuilding in the state.
This push extends beyond ports. Satheesan said the state’s technology parks in Thiruvananthapuram and Kochi have reached capacity, prompting the government to acquire more land and develop new IT parks near Kerala’s four international airports.
Satheesan, a former trade union leader, said labor militancy is no longer a significant barrier to investment in Kerala. Strikes have largely disappeared in recent years and unions have shifted their focus to improving productivity and demanding a greater share for workers in company profits.
“This is the new culture in Kerala,” Satheesan said. “All public sectors and private sectors are now ready to give their production incentives to workers.”
