Indian conglomerate Adani Group has secured permission to transform its private airstrip at Mundra port complex into a developed commercial airport.

The new commercial airport, which will be located in Gujarat, India, will entail an investment of Rs14bn ($203.3m), according to business newspaper Business Line.

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The project has been approved by the expert appraisal committee (EAC), attached to the Ministry of Environment, Forest and Climate Change.

Under the proposed development plan, Adani Group will establish a dedicated aerospace manufacturing building, among other facilities.

Adani Group currently manages an existing private airstrip at Mundra, spanning over 45ha of land.

The company tried to acquire a 23.5% stake in Mumbai Airport in February.

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It will be upgraded into a commercial airport, which will cover an area of approximately 522ha.

Once operational in 2022, the international airport will be able to handle large aircraft such as the Boeing 747-400.

Mundra International Airport Pvt Ltd, a wholly owned unit of Adani Ports and Special Economic Zone (APSEZ), will operate and manage the airport.

The Ahmedabad-based infrastructure conglomerate already forayed into the airport business earlier this year.

In February this year, the company won the bids to manage the Airports Authority of India (AAI)-operated airports at Ahmedabad, Lucknow, Jaipur, Mangaluru, Guwahati, and Thiruvananthapuram.

Adani Group quoted Rs168 per passenger for the Thiruvananthapuram International Airport, Rs115 for Mangaluru Airport, Rs174 for Jaipur, Rs171 for Lucknow, and Rs177 for Ahmedabad Airport.

Under the agreements, Adani Group is expected to manage the five airports on a long-term 50-year lease.

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