Adani Group Set To Dominate Aviation Sector; Likely To Acquire 74% Stake In Mumbai International Airport

Adani Group, which is majorly into the business of ports and energy, is set to emerge as the largest private operator of airports in the country, as the Cabinet approved the rights to the Group to take control of the airports in Ahmedabad, Lucknow, Mangaluru, Jaipur, Thiruvananthapuram, and Guwahati.

(Photo by INDRANIL MUKHERJEE / AFP)

Mumbai: Adani Enterprises Ltd (AEL) will get a shot in the arm with the group likely to acquire a 74 per cent stake in Mumbai International Airport (MIAL), which will further strengthen the group’s presence in the aviation sector. As per the business daily Business Standard, Adani Group is expected to announce the acquisition of GVK Group's 50.5 per cent stake before next week.  The group is expected to take over 23.5 per cent of minority partners, Airports Company South Africa (ACSA) and Bidvest Group. At present, ACSA and Bidvest hold 10 and 13.5 per cent stake, respectively, in MIAL. As per the report, Adani Group might finalise the deal for nearly Rs 15,000 crore.  It is also expected to get ownership of the upcoming Navi Mumbai airport, in which MIAL holds 74 per cent stake. Recently, AEL has got the approval of the Cabinet for transfer of six airports on 50-year leases which will allow the company to take control of the airports in Ahmedabad, Lucknow, Mangaluru, Jaipur, Thiruvananthapuram, and Guwahati. The Adani Group will emerge as the largest private operator of airports in the country besides the state-run Airports Authority of India (AAI), which runs most of the airports, according to the business daily Mint. The Group has won the bid to operate, maintain, and develop these six airports in a public-private partnership mode. AEL had won the contracts that concluded in February 2019 in which it offered to share the highest revenue-per-passenger with AAI during a bidding process. On the contrary, Kerala Chief Minister Pinarayi Vijayan had recently written to Prime Minister Narendra Modi urging the Centre to reconsider the decision to privatise the Thiruvananthapuram International Airport. In the letter, Vijayan stated that the government overlooked Kerala government's numerous pleas that the airport's operations and management be transferred to a Special Purpose Vehicle (SPV) in which the state dispensation is a major stakeholder. On Monday, shares of Adani Group companies soared 9 per cent on the development that the group is set to acquire a 74 per cent stake in MIAL.