Adani Group gets Maharashtra cabinet nod to take over Navi Mumbai airport project

The Maharashtra Cabinet accepted a proposal on Wednesday to enable Adani Airport Holdings Limited (AAHL) to run the Navi Mumbai international airport, which would be constructed in Panvel.

In the cabinet meeting presided over by Chief Minister Uddhav Thackeray, a proposal to replace the ownership of a concessional firm involved in the building of Navi Mumbai International Airport was accepted.

A statement released by the CM Office read, “As directed by the Project Control and Implementation Committee under the chairmanship of the Chief Secretary, the meeting approved the change in the ownership.”

For Rs. 1,685.2 crore, the Adani Group purchased a 23.5% shareholding held by two international companies, ACSA Global Limited and Bid Services Division (Mauritius) Limited (Bidvest). It purchased a 74% ownership in Mumbai International Airport, which includes the 50.5 % stake held by GVK Group.

Previously, the airport was to be constructed by GVK, who operated the Mumbai International Airport Ltd. (MIAL). However, it was taken over by AAHL last year, and this was accepted by the Directorate of Civil Aviation, Airports Authority of India, SEBI, CCI, and ultimately the CIDCO, which is in charge of the mega-project.

This approval gives way for the AAHL, led by industrialist Gautam Adani, to become the largest private airport operator, handling multiple major airports including Mumbai, Navi Mumbai (coming), Bengaluru, Ahmedabad, and Lucknow, with three more anticipated in the near future.

In Navi Mumbai, an international airport would be built over an area of 1,160 hectares. The first runway was expected to be finished in December 2019, however the project has been pushed back. Work has also suffered as a result of Covid-19, the airport is now projected to be finished by 2023-2024.