Adani Enterprises pays Rs 1,103 cr to AAI for acquiring airport assets
AVIATION & AIRPORTS

Adani Enterprises pays Rs 1,103 cr to AAI for acquiring airport assets

Minister of State for Civil Aviation, V K Singh told the media that Adani Enterprises has paid Rs 1,103 crore to the state-controlled Airports Authority of India (AAI) for acquiring its airport assets at Mangaluru, Lucknow, and Ahmedabad.

Replying to a question at the Rajya Sabha by Trinamool Congress member of parliament Jawhar Sircar, Singh said that according to the concession contracts, the concessionaires of airports at Mangaluru, Lucknow, and Ahmedabad had to pay AAI a sum of Rs 1,103 crore.

It comprised capital for Regulatory Assets Base (RAB) for aeronautical and non-aeronautical assets and Cost of Capital Work in Progress (CWIP) incurred by AAI at these airports.

The Concessionaires have paid AAI a sum of about Rs 1,103 crore so far, including deemed initial RAB up to 31 March 2018 and value of CWIP as on takeover date of respective airports.

The remaining adjusted initial RAB up to acquire the date of the airports, as decided by the Airport Economic Regulatory Authority of India (AERA), is part of the balance payment that the Concessionaires are liable to pay.

Adani Enterprises acquired the works at Mangaluru, Lucknow, and Ahmedabad airports in November last year.

In 2020, the concessionaire had earlier invoked force majeure due to the pandemic and asked for a 205-day extension to acquire the airports, Singh told the media. The AAI awarded the concessionaire 90 days’ extension.

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Also read: Adani Group pays Rs 2,440 cr to AAI for acquiring six airports

Minister of State for Civil Aviation, V K Singh told the media that Adani Enterprises has paid Rs 1,103 crore to the state-controlled Airports Authority of India (AAI) for acquiring its airport assets at Mangaluru, Lucknow, and Ahmedabad. Replying to a question at the Rajya Sabha by Trinamool Congress member of parliament Jawhar Sircar, Singh said that according to the concession contracts, the concessionaires of airports at Mangaluru, Lucknow, and Ahmedabad had to pay AAI a sum of Rs 1,103 crore. It comprised capital for Regulatory Assets Base (RAB) for aeronautical and non-aeronautical assets and Cost of Capital Work in Progress (CWIP) incurred by AAI at these airports. The Concessionaires have paid AAI a sum of about Rs 1,103 crore so far, including deemed initial RAB up to 31 March 2018 and value of CWIP as on takeover date of respective airports. The remaining adjusted initial RAB up to acquire the date of the airports, as decided by the Airport Economic Regulatory Authority of India (AERA), is part of the balance payment that the Concessionaires are liable to pay. Adani Enterprises acquired the works at Mangaluru, Lucknow, and Ahmedabad airports in November last year. In 2020, the concessionaire had earlier invoked force majeure due to the pandemic and asked for a 205-day extension to acquire the airports, Singh told the media. The AAI awarded the concessionaire 90 days’ extension. Image Source Also read: Adani Group pays Rs 2,440 cr to AAI for acquiring six airports

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