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Adani Group takes over Ahmedabad airport on lease for 50 years, starts operations

Adani Group has won the rights for operations, management, and development of six major airports of the country - Lucknow, Ahmedabad, Jaipur, Mangaluru, Thiruvananthapuram, and Guwahati - for 50 years

twitter-logoBusinessToday.In | November 8, 2020 | Updated 18:07 IST
Adani Group takes over Ahmedabad airport on lease for 50 years, starts operations
AAI officials handing over Ahmedabad International Airport to Adani Group

Billionaire Gautam Adani-led Adani Group has taken over Ahmedabad airport on Sunday and has started commercial operations at Sardar Vallabhbhai Patel International Airport. The airport was operated by the state-owned Airports Authority of India (AAI).

"Handing over of Ahmedabad airport to Adani Ahmedabad International Airport Ltd was done by Sh G. Chandramouli, @aairedwr , SIU team in the presence of Sh Ben Zandi, CEO, Adani Airports, Sh Ulrich Heppe, Chief Airport Officer, AMD Airport & Sh Jeet Adani, VP Finance," AAI said in a tweet.

On November 6, the AAI senior officials exchanged memorandum and handed over Ahmedabad (Gujarat) airport to the Adani Group on lease for a period of 50 years.

The AAI had signed concession agreements with the Adani group on February 14 for operations, management, and development of the Mangaluru, Lucknow, and Ahmedabad airports.

The company has won the rights to run six major airports of the country - Lucknow, Ahmedabad, Jaipur, Mangaluru, Thiruvananthapuram, and Guwahati - for 50 years. Of these, the company took over the operation, management and development of Lucknow and Mangaluru airports on October 31 and November 2, respectively. The company is expected to take control of Mumbai and Navi Mumbai airports in the next few months, and the latest by March 2021.

Last week, a senior executive of Adani Enterprises, the flagship company of Adani Group, said that the company plans to invest about Rs 50,000 crore in capital expenditure to boost its new businesses over the next five years, with a major chunk of it going towards airports business. The company plans to invest Rs 35,780 crore in its airport business in the next five years, AEL Chief Financial Officer Jugeshinder Singh said.

Out of the Rs 35,780 crore capex for the airport business, the company intends to spend Rs 14,249 crore on the Mumbai and Navi Mumbai airports and about Rs 15,000 crore on the other six under its control.

Also Read: Adani Enterprises to spend Rs 50,000 crore on capex in 5 years; airport biz to get big chunk

Also Read: AAI to Adani: Take over Ahmedabad, Mangaluru, Lucknow airports by November

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