The Indian business conglomerate Adani Group will now manage airports in the three Indian cities of Ahmedabad, Lucknow and Mangaluru in a public-private partnership (PPP) introduced by the Indian government.
The Adani Group will run and operate the airports in these three mega cities of the country for the next 50 years.
The statement released by the union government stated: “The Union Cabinet on Wednesday approved the leasing out of these (Ahmedabad, Lucknow and Mangaluru) three airports of the Airports Authority of India through PPP to the highest bidder – Adani Enterprises, for operation, management and development for a lease of 50 years.”
This is the Indian government’s first airport privatisation decision in 13 years after handing over the management of Delhi and Mumbai airports to GMR and GVK group in 2006.
Mumbai Society And Daily Life Source: Sattish Bate/Hindustan Times via Getty Images
Adani won the bidding of six airports
Bidding for other airports at Trivandrum, Guwahati and Jaipur were also won by the Adani Enterprises, which was held during February this year, but the cabinet has only approved the leasing of Ahmedabad, Lucknow and Mangaluru airports.
According to the report published in the Economic Times, the Indian cabinet will clear the other three projects by the end of this (July) month. There is an issue with Trivandrum airport, as the state government has raised concerns over it being awarded to Adani Group.
The employees at all of the six airports will have the option of staying on with the state-owned organisation or of joining Adani Enterprises.
The statement released by the Press Information Bureau (PIB) said: “These projects will bring efficiency in delivery, expertise, enterprise and professionalism apart from harnessing the needed investments in the public sector.”
“This will also result in enhanced revenues to the Airports Authority of India (AAI), which may lead to further investment by AAI at Ties II and Ties III cities, and economic development in these areas in terms of job creation and related infrastructure.”
Will services become expensive?
The Adani group will pay Rs. 177 per passenger to AAI for the operation of the Ahmedabad Airport. After winning the bid in February 2019, there were some rumours that the services at the six airports would become expensive, going by the models of Mumbai and Delhi airports which were privatised earlier.
The Adani Group clarified this and said: “Adani Group has nothing to do with the development. We are still awaiting the Letter of Award for the project from the Airports Authority of India. Kindly ignore the rumours.”
Adani Group chairman Gautam Adani says he expects to start construction on the Carmichael mine in western Queensland soon. Source: AAP
What is the Adani Group?
With the Adani headquarters located in Ahmedabad, Gujarat, the company is one of India’s largest integrated infrastructure conglomerates. The Adani Group has stakes in the natural resources – coal mining and trading, logistics – ports, shipping and rail, energy – thermal power generation, transmission, distribution and renewable energy.
It also has interests in real estate and public transport infrastructure, consumer finance and defence sectors.
Apart from in India, the Adani Group is also active in Australia and Indonesia, in the mining and the ports sectors.
Anti-Adani protestors plan a repeat on Friday of last month's protest in the heart of Brisbane's CBD (AAP) Source: AAP
Adani – controversy in Australia
Even though the Adani Group is one of India’s largest companies with stakes in a range of sectors, it has found itself surrounded by controversy in Australia, and it became one of the Australian federal government’s central issues during the May 18 election.
However, the Indian mining giant cleared environmental obstacles and received approval from the Queensland Environment Department to start building the mine at the Galilee Basin site.
Opposition against the approval for the Adani mining continued in Brisbane on Friday, with opponents vowing to “stop the city” with a protest march.
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