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Airports Authority extends contract to manage six airports as Adani seeks more time: Report

Adani Group had reportedly requested AAI for more time to improve its financial ability to take over the airports.

August 20, 2020 / 08:14 PM IST

Airports Authority of India (AAI) has extended its contracts at six airports till March 2021, after Adani Group sought more time to take charge of three airports. This means the privatisation process of the Ahmedabad, Lucknow, Mangaluru, Jaipur, Guwahati and Thiruvananthapuram airports will be delayed, The Economic Times reported.

Moneycontrol could not independently verify the story.

Adani Group had not yet responded to a query by The Economic Times.

Extending the contract will help avoid legal complications, an AAI executive told the publication.

Adani Group had in February 2019 won the bids to manage and operate the six airports, and was supposed to take charge of the Ahmedabad, Lucknow and Mangaluru by August 12.

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Cabinet approval for the remaining three airports is pending.

In March, the conglomerate told AAI that it will be unable to take control of the airports, citing force majeure due to the COVID-19 outbreak, the report said.

On June 8, Adani Group, in a letter to AAI, requested more time to improve its financial ability to take over the airports, the report said.

"Extension of time for satisfying conditions precedent to achieving financial closure… In view of the above, it is intimated that all expenditure and revenue contracts of all departments will have to be kept valid up to March 31, 2021, with a provision for extension by another six months for the smooth operation of the above six airports," the company said in the letter.
Moneycontrol News
first published: Jun 11, 2020 11:04 am
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