The Government of India will evaluate Adani Airport Holdings’ (AAHL) request to acquire controlling interest in Mumbai Airport.
The Minister of Civil Aviation of India Hardeep Singh Puri told CNBC-TV18 that the government and the Airports Authority of India (AAI) will examine AAHL’s request to acquire a 74% stake in Mumbai International Airport (MIAL), which operates the airport.
Minister Puri was quoted by the publication as saying: “As per shareholders’ agreement and OMDA (Operations, Management, Development agreement), the shares held can be sold subject to certain conditions and consent of AAI and Government of India.
“The request for purchase of shares by Adani Group was received by us and we will examine it.
“OMDA lays down mechanism of revenue sharing between AAI and concessionaires and it also stipulates the service standards that the airports shall maintain. All future developments of an airport is governed by OMDA.”
Recently, AAHL, the holding company of Adani Group’s airports business, signed an agreement to acquire the debt of GVK Airport Developers (GVK ADL), the holding company through which GVK Group owns a 50.5% equity stake in MIAL.
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AAHL also plans to acquire a 23.5% stake of MIAL held by minority partners Airport Company of South Africa (ACSA) and Bidvest.
Mumbai Airport is one of the busiest airports in India in terms of passenger traffic. Recently, the airport started operating 200 flights every day, doubling aircraft movement amid the Covid-19 crisis.