The Maharashtra cabinet, chaired by Chief Minister Uddhav Thackeray, on Wednesday approved the concession agreement in favour of Adani Group for the Navi Mumbai International Airport (NIMA). The project entails an investment of Rs 16,000 crore.
The cabinet nod was necessitated as there was change in the ownership of Mumbai International Airport Pvt Ltd (MIAL), which was selected as a concessionaire for airport development in 2017. The 50.5% stake held by GVK Airport Developers Ltd has been acquired by Adani Group’s arm, Adani Airport Holding Ltd. The initial concession period is 30 years, with an option of 10-year extension.
In a regulatory statement, Adani had said, “Upon the acquisition of the debt of GVK ADL, Adani Group will take steps to obtain necessary customary and regulatory approvals, as may be required, to acquire controlling interest in MIAL.” Further, GVK, in a statement, had said Adani would achieve financial closure of the Navi Mumbai International Airport project at the earliest in order to commence construction.
The transfer of shareholding was approved by the Directorate General of Civil Aviation, Airport Authority, SEBI, Competition Commission of India and the Board of Directors of City and Industrial Development Corporation (CIDCO) that holds 26% equity in the project development. Besides, CIDCO is a nodal agency.
The Chief Minister’s Office said, “A proposal to change the ownership of a concessionaire company in the construction of Navi Mumbai International Airport was approved in a cabinet meeting held here today.” The cabinet gave its nod as per the recommendation of the Project Control and Implementation Committee headed by the chief secretary.
In 2018, GVK Power and Infrastructure had signed a concession agreement with CIDCO, to create a special purpose vehicle (SPV) for developing the NMIA. GVK, as the leader of the Mumbai International Airport (MIAL) consortium, held 74% equity shares of the SPV, with CIDCO owning the remaining 26%.
