Lawstreet Journal

COVID-19 Effect: Adani Group Seeks Extension of Deadline to Take Over Three Airports

Lawstreet Journal 8 Jun 2020 12:52am

Image courtesy: Lawstreet Journal Business COVID-19 Effect: Adani Group Seeks Extension of Deadline to Take Over Three Airports

As per recent reports, an extension of the takeover deadline for three airports in Ahmedabad, Lucknow, and Mangalore has been sought by the Adani Group, the conglomerate which submitted aggressive bids in 2019 for six state-run airports.

India's Airports Authority sought bids for six of its airports in 2019, and Adani Group had emerged as the top bidder for all six airports. While Jaipur, Trivandrum, and Guwahati's bids are yet to be accepted by the Union Cabinet, Adani Group signed the takeover agreement in February 2020 for the operations, development, and maintenance of the remaining three airports.

Within six months, Adani Group was supposed to take over the three airports, according to the agreement. However, the group has now sought extension within the deadline by invoking the force majeure clause of the Public-Private Partnership Agreement and quoting that work had been affected by the lockdown and prohibition of international flights.

However, as per multiple sources, the group remains committed to all six airports and is expected to take over the operation of the airports soon.

At the same time, it is expected that the aggressive bids submitted by the Gautam Adani-led conglomerate will be challenging in the near term due to a severe decline in demand amid the COVID-19 disruption. 

ICRA also warned on 3rd June 2020 that the Indian aviation infrastructure industry will be dominated by dark clouds until September 2020 and that recovery will only begin in the second half of the financial year. 

It is expected that passenger traffic at airports will remain under pressure during Financial Year 2021 April-September,… Continue Reading...

Tagged: Adani  
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