The Airports Authority of India (AAI) is extending its contract with concessions at six airports by March 2021, indicating that it plans to run them by then. The Adani group had expressed inability to take three airports, and privatization of the other three is pending cabinet approval.
This indicates delays in privatization of Ahmedabad, Lucknow, Mangaluru, Jaipur, Guwahati and Thiruvananthapuram airports. Concessors include third party services such as ground handlers, retail / food outlet operators.
Adani finally wants to take over
The Adani Group won bids to operate, manage and develop all six in February 2019. In February 2020, it signed concession agreements for Ahmedabad, Lucknow and Mangaluru and was scheduled to take over by 12 August. But in March, he told AAI. Not able to take over, citing the force’s potential due to the adverse effects of the epidemic on the aviation sector. ET reported this on 4 June. The group asked for time until 15 February 2021.
While Adani has not occupied airports within the stipulated August deadline, it is understood that the group intends to do so eventually. In a letter to the directors of all the six airports on Monday, AAI stated that the Adani Group has sought to extend the time for satisfactory conditions before achieving financial closure … In view of the above, it has been informed that all expenditure And the revenue contracts of all, with the provision of extension for another six months for the smooth operation of the above six airports, the departments would have to be kept valid till 31 March 2021. ”
ET has reviewed the letter. Adani did not respond to an emailed query before suppressing the story. An AAI executive said the extension of the contract was like a competent step to avoid legal issues.