By: Express News Service | Mumbai |
June 24, 2021 2:52:40 am
The Maharashtra Cabinet on Wednesday approved a proposal to allow Adani Airport Holdings Limited (AAHL) to operate the Navi Mumbai international airport that is coming up in Panvel. (File photo)
The Maharashtra Cabinet on Wednesday approved a proposal to allow Adani Airport Holdings Limited (AAHL) to operate the Navi Mumbai international airport that is coming up in Panvel.
Earlier, the green field project was to be developed by GVK Airport Developers Limited (GVK ADL), which was also running the Mumbai International Airport Limited (MIAL).
Last September, the Adani Group had taken control of the Mumbai airport and the proposed Navi Mumbai international airport through AAHL – the group’s flagship holding company for its airport business and a subsidiary by acquiring the debt of GVK ADL.
GVK ADL is the holding company through which GVK Group holds 50.50 per cent equity stake in MIAL, which in turn holds 74 per cent equity stake in Navi Mumbai International Airport Limited (NMIAL).
The takeover had earlier been approved by the Directorate of Civil Aviation, Airports Authority of India, SEBI and CIDCO, which is overseeing the project.
CIDCO Managing Director Dr Sanjay Mukherjee and the Adani Group did not comment on the decision.
The international airport is coming up over 1,160 hectare in Navi Mumbai. The first runway was supposed to be completed in December 2019 but the project has been delayed. Work has also been hit due to Covid-19. Now, the airport is expected to be completed by 2023-2024.
A senior IAS officer said that the aviation industry will pick up after the suspected third wave of Covid-19 and space at the existing Mumbai airport will fall short, necessitating the need of a new airport. A CIDCO official said, “Adani has acquired a share of GVK. It has purchased MIAL and as a result, has acquired NMIAL. As per clause 5.3.2 of concession agreement, a concurrence from the state government was required. The matter came up before the Cabinet and a concurrence was given.’’
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