Saturday, June 08, 2019

Cabinet nod for handing over 6 airports to Adani likely in July

Adani Enterprises, which had bid successfully to run six Indian airports, is likely to be formally awarded the contracts for doing so following the re-election of the Modi government. Cabinet approval for the move is likely next month, said aviation ministry officials.
“The award of projects happened during the end of the first term of the government,” said one of the persons cited above. “The Cabinet did not take up the matter for approval as the government had completed its tenure then and the ministry’s note was not accepted by the cabinet secretariat. We will again be sending the note and expect it to be cleared by July-end.”
Transfer of all six assets to Adani Enterprises will start after this, he said. Employees at the airports, currently being run by Airports Authority of India (AAI), will have the option of joining Adani Enterprises or staying with the state-owned organisation. Adani won the right to upgrade and operate airports in Ahmedabad, Lucknow, Jaipur, Guwahati, Thiruvananthapuram and Mangalore for 50 years in auctions held late last year.
AAI will earn about Rs 1,300 crore annually from the privatisation of the six airports, according to an internal estimate by the organisation that ET has seen.
Earnings to be Used to Develop Interior Airports.
Adani Enterprises had bid aggressively for the airports, exceeding offers by GMR Group, the country’s biggest airport manager, according to people with knowledge of the matter.
08/06/19 Mihir Mishra/Economic Times
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