Navi Mumbai airport in Panvel to be run by Adani Group
The Adani Airport Holdings Limited (AAHL) receives approval from the Maharashtra government to operate the upcoming Navi Mumbai international airport in Panvel.
GVK Airport Developers Limited (GVK ADL), which also runs the Mumbai International Airport Limited(MIAL), was originally supposed to develop the greenfield project.
However, the Adani Group acquired control of the Mumbai airport and the proposed Navi Mumbai international airport in September 2020 by purchasing the debt of GVK ADL through AAHL which is the holding company for the group's airport business, as well as a subsidiary.
The GVK Group owns a 50% stake in MIAL and a 74% ownership in Navi Mumbai International Airport Limited (NMIAL) through GVK ADL, a holding company.
The Directorate of Civil Aviation, Airports Authority of India, SEBI, and CIDCO, which is managing the project, had already approved the takeover.
With this approval, the AAHL, led by industrialist Gautam Adani, will become the world's largest private airport operator, operating multiple major airports including Mumbai, Navi Mumbai (coming), Bengaluru, Ahmedabad, and Lucknow, with three more expected soon.
The awaited airport project situated in Navi Mumbai will be spread across 1,160 hectares of land. The first runway was expected to open in December 2019, but it has been pushed back. The arrival of Covid-19 has also hampered the work.
The Navi Mumbai International Airport Limited is now scheduled to open in 2023-2024.
According to a senior IAS officer, the aviation industry will pick up following the suspected third wave of Covid-19, and space at the existing Mumbai airport will be insufficient, entailing the construction of a new airport.
The Adani Group has purchased a stake in GVK, cites a City and Industrial Development Corporation (CIDCO) official. It has acquired NMIAL as a result of its purchase of MIAL.
He said that the approval of the state government was required under clause 5.3.2 of the concession agreement. The matter was brought before the Cabinet, and approval was granted.
Also read: Adani’s MIAL takeover approved by AAI