Adani Group commits investments in Nepal's airports, energy sectors

Nepal's Finance Minister, Ram Sharan Mahat, has announced that the Adani Group is set to invest in various public sectors within Nepal, with a focus on airports and the energy industry. Following a meeting with Gautam Adani, the founder and chairman of the Adani Group, in Gujarat, Mahat revealed that Adani expressed interest in investing in Nepal, particularly in energy and airport management. During the Vibrant Gujarat Summit, Mahat discussed Adani's commitment to investing in Nepal, specifying projects such as the construction of a new airport near the India-Nepal border and the management takeover of Bhairawaha International Airport and Tribhuwan International Airport. Mahat extended an invitation to Adani to participate in the upcoming Nepal Investment Summit in April, to which Adani has committed to making an effort to attend. Notably, Adani expressed intentions to expand and operate Tribhuwan International Airport in Kathmandu, assume management of Bhairawaha International Airport, and contribute to the construction of Nijgadh International Airport in Bara, estimated to cost around $6.7 billion. Adani is quoted as saying they are prepared to operate Bhairawaha's international airports and construct the Nijgadh airport. Additionally, Adani conveyed interest in investing in hydropower projects, specifically the Bheri and Karnali projects in Nepal. A delegation from the Adani Group had previously visited Kathmandu, engaging in discussions with the Director General of Civil Aviation Authority of Nepal (CAAN), Pradip Adhikari, exploring possibilities for investment in Nepal's airport sector. Given the challenges faced by airports like Pokhara International Airport and Gautam Buddha International Airport, CAAN is considering involving the private sector in the operation of three international airports, including Tribhuvan International Airport, and the construction of Nijgadh International Airport. A global bidding process is being planned by CAAN for leasing out these airports, marking a shift towards a Public-Private Partnership model. Nepal's Minister for Culture, Tourism, and Civil Aviation, Sudan Kirati, emphasised the government's efforts to create a comprehensive package to facilitate the smooth operation of these airports and the construction of the new Nijgadh International Airport.