AAI: Employees Allege Sale Of Assets To Adani Group At Fraction Of The Estimated Price

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The Logical Indian Crew

AAI: Employees Allege Sale Of Assets To Adani Group At Fraction Of The Estimated Price

In a letter to the Prime Minister, the Employees Union of the Airport Authority of India has urged for a judicial probe into the matter concerning the privatisation of three airports.

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The Employees' Union of Airport Authority of India has alleged that AAI sold the aeronautical and non-aeronautical assets of three airports worth ₹1,300 crore to the Adani Enterprises Limited (AEL) at a fraction of the price. The amount of the assets was estimated when Aviation Ministry was seeking government approval for privatisation. In an open letter to the Prime Minister, the employees had mentioned that when the Ministry of Civil Aviation had sought approval from the government for a Public-Private Partnership Appraisal Committee (PPPAC), the assets were sold to Adani Group for ₹500 crore.

Bid Was Out For Six Airports

The Private Group took over Mangaluru, Lucknow and Ahmedabad airports last year. In December 2018, AAI bid out for six airports, and in February 2019, Adani Enterprises Limited (AEL) came out as the highest bidder. Three airports have already been handed over to the Adani Group, and the remaining three are likely to be handed over by the end of the month.

Deficit of 80% To Mangaluru Airport

These allegations come at a time when AAI reported losses for the first time since its inception. The Airport Authority incurred a loss of ₹ 2,814 crore compared to the profit of ₹ 1,985 crore in the financial year 2020. The loss of revenue also led to cutting down of incomes for the employees for six months.

The Adani Enterprises signed contracts for Mangaluru, Lucknow and Ahmedabad airports for ₹74.5 crore, ₹147 crore and ₹277 crore for the aeronautical non-aeronautical assets of the airports, reported The Hindu.

On the contrary, when the estimates were compared to the estimates of the Civil Aviation Ministry, a deficit of 80 per cent was found for the Mangaluru Airport, 75 per cent for Lucknow and 28 per cent from the Ahmedabad Airport.

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