Airports to Adani Group given by Government despite the concern raised by NITI Aayog and Department of Economic Affairs (DEA). The key Airports to Adani Group handed over by Modi Government’s is raising finger. Many said that due process nas not followed while allocating Airports to Adani Group. Now they have monopoly in Airport Infrastructure management in India.
This is not a good sign when a single infrastructure company manage all key Airports in India. Now Adani Group will control Delhi and Mumbai Airport along with other key Airports in India. Government ignored the Competition Commission of India (CCI) remarks while allocating Airports. CCI has raised the question over the single company monopoly in Airport Management.
Adani group become the largest airport infrastructure management company in India
With the fresh acquisition of Mumbai and Navi Mumbai Airport in India. The Adani Group become largest Airport Infrastructure Management company in India. Now they will manage Ahmedabad, Mangalore, Lucknow, Jaipur, Guwahati and Thiruvananthapuram airports. Now they will also manage Mumbai and Navi Mumbai Airport. The airports managed approx 8 Crore passengers in last financial year. This the large percentage of over all passengers travels by air last year in India.
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As per Indian Express report, the DEA raised a flag over the allocation of more than two airports to a company. The DEA said that, these six airports projects are highly capital-intensive and sensitive. Hence a single company can not manage more than two airports considering financial risk and monopoly situation.
GMR group was the only qualified bidder the Delhi and Mumbai Airport
While considering the bids for Delhi and Mumbai Airport for PPPAC program. The GMR group was the only qualified bidder for both the airports. But the contract was not allocated to the GMR Group despite being most suitable bidder for Delhi and Mumbai Airport. The DEA and NITI Aayog raised concern about the experience and capability of Adani Group. But ignoring all flags government decided to allocate Airports to Adani Group without experience.
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Both DEA and NITI Aayog said, “A bidder lacking sufficient technical capacity can well jeopardise. The project can compromise the quality of services that the government is committed to provide”. It is interesting to know that committee has ignored requisite for the bid qualification. Many fail to understand the Government move for allocating key infrastructure to an inexperience company.
Unexperienced Adani group facing challenge in taking over allocated airports
Let me tell you that Adani group has signed a concession agreement year after taking over the six airports last year. They requested the government to delay the Airports acquisition process. They want process to delayed till February 2021 aimed Covid-19. Adani group said that they are facing difficulties in the transition due to Covid-19.
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Despite the challenge in taking over smaller airports by Adani Group. The government allocated the India’s largest Airports to Adani Group for management. This has raised the serious question on the quality of service Adani Group will offer at Mumbai Airport. You must know that other bidders were more experience comparing Adani Group. It was GMR Group, Zurich Airport and Cochin International Airport Ltd. But they were ignored while allocating airports and government favoured Adani Group.
ED and CBI action against GVK group for financial irregularities
Incidentally, Few month before the allocation of key airports to Adani Group. The most prominent and experienced airport infrastructure company faced heat from the government. The GVK group chairman and his son has grilled from the enforcement directorate. a raid conducted in money laundering case to their premises. The CBI filed case for irregularities of over Rs 705 crore in the development of Mumbai international airport
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It may be a coincident but people close the matter believe that this action was taken to build pressure on GVK group. The ED and CBI action was taken to force GVK group to offload their stake from Mumbai Airport. The GVK group has offloaded their stake and gave it to Adani Group after this action. How true this allegation is, we don’t know and do not support the claim. But if this is true then it is sad for the India and unfair for other business leaders of India.
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