India's southern state of Kerala was not consulted on MSC Group's planned $1.4 billion investment in the Vizhinjam port in partnership with Adani Ports and Special Economic Zone, the state's chief minister said late on Thursday.
Adani Ports NSE:ADANIPORTS said on Tuesday that MSC would acquire a 49% stake in the port, in what is set to be the largest foreign private investment in India's domestic port infrastructure. Switzerland-based MSC is the world's biggest container shipping company.
"I have conveyed the State Government's strong displeasure to the management of Adani Ports and Special Economic Zone Ltd," Chief Minister V.D. Satheesan said in a post on X.
"Any change in the concessionaire's shareholding structure requires government approval and will be examined strictly under the provisions of the concession agreement and applicable regulations."
Adani Ports did not immediately respond to a request for comment.
Its shares fell as much as 1% on Friday and were last down 0.2% in afternoon trade. The stock gained about 6% in the last three sessions after the company's announcement.
Vizhinjam is India's first deep-water container transshipment port and is expected to handle domestic and regional cargo at a lower cost rather than routing it through Sri Lanka, according to the port's website.
Adani Ports is the private concessionaire developing and operating the port.