Adani Group has announced the formation of a new entity to manage its airport businesses in India and abroad.
Adani Airports Limited will be responsible for acquiring, promoting, operating, and maintaining the group’s airports, as well as overseeing any design, development, upgrade, and construction work.
The new entity has been incorporated by Adani Enterprises, according to a regulatory filing.
Adani Enterprises said in regulatory filings: “Adani Airports Ltd is incorporated in India and registered with the Registrar of Companies at Ahmedabad in Gujarat on August 2, and is yet commence its business operations.”
In February this year, Adani Group won a tender to manage and operate all six government-owned Indian airports located in Ahmedabad, Jaipur, Mangaluru, Trivandrum (Thiruvananthapuram), Lucknow, and Guwahati.
Adani Enterprises secured the contract by defeating rival bids from companies including GMR Group, National Investment and Infrastructure Fund (NIIF), Fairfax India, AMP Group, and PNC Infratech.
Adani is expected to pay Rs3.15tn ($45.264bn) to the Government of India to manage the airports.
The six airports handled a combined 30 million passengers last year, an increase of 22% from the previous year.
In November 2018, the government granted permission for the privatisation of these six airports under the Airports Authority of India (AAI) on the public-private partnership model.
Adani Group secured permission last month to transform its private airstrip at Mundra port complex into a developed commercial airport with an investment of Rs14bn ($203.3m), according to Business Line.
Adani Group is also competing with GMR, L&T, and Reliance Infra for a $2.32bn contract to build Jewar Airport in Greater Noida, Uttar Pradesh, India.