The Adani group got a contract in a public-private partnership (PPP) of these three airports in a very aggressive bid last year. In view of the Corona crisis, the Adani group has demanded an increase in deadline. These three airports are being privatized.
Corona crisis: Adani group not ready to take possession of three airports
Adani group asked for time
Adani group used emergency provision to take possession of three airports, and Adani got contract under the privatization of three airports.
In view of the Corona crisis, the Adani Group has now sought to increase its deadline, expressing its inability to take possession of Ahmedabad, Lucknow and Mangaluru airports from the Airport Authority (AAI). These three airports are being privatized.
The condition of the country’s economy has deteriorated due to the Corona epidemic and subsequent continuous lockdown. In this case, every type of businessman, small or big, is also worried.
What is the Matter
The Adani group got a contract in a public-private partnership (PPP) of these three airports in a very aggressive bid last year. Now the Adani group has used the emergency facility ‘force majeure’ clause for this contract. It is a facility under which the concerned parties are not obliged to accept the terms of the contract in the event of a natural disaster or other major crisis like riots, pandemics, crime etc. In legal parlance, such calamities are called ‘Act of God’.
What did Adani say
According to an English newspaper, in a letter to the Airport Authority of India (AAI), the Adani group has demanded that the deadline for depositing the asset transfer fees of Rs 1,000 crore to be paid for the three airports increased from August. December 2020.
Significantly, Adani got a contract for the operation and development of a total of six airports under bidding in the year 2018. Adani has signed a binding concession agreement with the Airport Authority for the development, operation and maintenance of three of these airports Lucknow, Ahmedabad and Bengaluru. Adani has to pay an asset transfer fee of around Rs 2,000 crore for all six airports.
Earlier, the GVK Group had also told the City and Industrial Development Corporation (CIDCO) using the force majeure clause that it would not be able to start construction of the Navi Mumbai Airport project to be built at a cost of Rs 16,000 crore.