+
Adani Airports to invest 100 billion in airport business post bidding win
AVIATION & AIRPORTS

Adani Airports to invest 100 billion in airport business post bidding win

The frontrunner of Adani Group, Adani Enterprises (AEL), has committed a hefty investment of Rs 100 billion in the airport business through its subsidiary Adani Airports by 2026. 

Recently, Adani Airports won a bid for six airports as a part of the government’s privatisation initiative, where bidders were invited to handle the operations and maintenance of the following airports – Ahmedabad, Jaipur, Lucknow, Thiruvananthapuram, Mangaluru and Guwahati. 

Reportedly, the company will make an upfront payment of Rs 36 billion and about Rs 60 billion as capital expenditure over a period of seven years. It is estimated that three airports will start generating profits from April 2020. 

After the Cabinet approval, the Airports Authority of India (AAI) issued letters of award to the conglomerate for the Ahmedabad, Lucknow and Mangaluru airports.

However, the government has yet to take a call about Thiruvananthapuram airport. The Chief Minister of Kerala has requested that the airport not be privatised and be handed over to the state government for its operation, instead. 

As far as the Jaipur and Guwahati airports are concerned, the government sited legal issues as reasons for the delay and reaffirmed that they were almost resolved and a decision would be taken soon. 

The AAI will nonetheless, still be in charge of the statutory functions of providing communication navigation surveillance and air traffic management services among other things. 

The frontrunner of Adani Group, Adani Enterprises (AEL), has committed a hefty investment of Rs 100 billion in the airport business through its subsidiary Adani Airports by 2026. Recently, Adani Airports won a bid for six airports as a part of the government’s privatisation initiative, where bidders were invited to handle the operations and maintenance of the following airports – Ahmedabad, Jaipur, Lucknow, Thiruvananthapuram, Mangaluru and Guwahati. Reportedly, the company will make an upfront payment of Rs 36 billion and about Rs 60 billion as capital expenditure over a period of seven years. It is estimated that three airports will start generating profits from April 2020. After the Cabinet approval, the Airports Authority of India (AAI) issued letters of award to the conglomerate for the Ahmedabad, Lucknow and Mangaluru airports.However, the government has yet to take a call about Thiruvananthapuram airport. The Chief Minister of Kerala has requested that the airport not be privatised and be handed over to the state government for its operation, instead. As far as the Jaipur and Guwahati airports are concerned, the government sited legal issues as reasons for the delay and reaffirmed that they were almost resolved and a decision would be taken soon. The AAI will nonetheless, still be in charge of the statutory functions of providing communication navigation surveillance and air traffic management services among other things. 

Related Stories

Gold Stories

Next Story
Products

Interio by Godrej launches modular workplace solutions

Interio by Godrej has launched Workscapes, a modular workplace solutions category designed to help organisations configure and adapt workspaces to changing requirements. The portfolio combines mobile and compatible furniture and support elements that can be rearranged across different work modes without changes to fixed layouts.Workscapes includes Collaboration Tables, Privacy Solutions, Mobile Markerboards and Space Dividers, Power Solutions, Storage and Support Elements, Meeting and Presentation Tools, and Seating Elements. The range is designed for focused work, collaboration, informal disc..

Next Story
Infrastructure Urban

CAFE-III Gives Auto Industry Investment Clarity

The government’s new Corporate Average Fuel Economy (CAFE-III) norms have provided the automobile industry with a clearer framework for technology investments, according to industry representatives. The framework seeks to balance environmental objectives with flexibility for manufacturers while encouraging the adoption of flex-fuel vehicles and biofuels. Society of Indian Automobile Manufacturers (SIAM) President Shenu Agarwal said the five-year framework would give automakers greater predictability to plan investments and accelerate innovation. He said the regulation established annual targ..

Next Story
Infrastructure Energy

Mines Ministry to Auction Two Offshore Mineral Blocks in Andaman Sea

The Ministry of Mines will launch an auction of two offshore mineral blocks in the Andaman Sea on Thursday, seeking to unlock India’s offshore mineral potential and strengthen long-term mineral resource security. The blocks will be offered under a composite licence, which permits exploration and development activities in accordance with the applicable regulatory framework. The ministry said the auction was intended to encourage systematic exploration, attract investment and promote the use of advanced technologies for offshore mineral exploration and development. The initiative is also aimed..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

SPECIAL OFFER
QR Code