Mumbai Airport Concession Agreement: What You Need to Know
The Mumbai International Airport Limited (MIAL) is one of the busiest airports in India, with millions of passengers passing through every year. In 2019, the MIAL signed a concession agreement with Adani Airport Holdings Limited, granting them the right to operate, manage, and develop the airport for the next 50 years. The agreement has been in the news recently, with controversy surrounding the deal, and its impact on the airport and its passengers.
What is a Concession Agreement?
A concession agreement is a contract between a government or public entity and a private company, where the company is given the right to operate, maintain, and develop a public asset for a set period. In this case, Adani Airport Holdings has been granted a concession to manage and develop the Mumbai airport.
What are the Terms of the Mumbai Airport Concession Agreement?
Under the terms of the agreement, Adani Airport Holdings will pay MIAL a fixed fee and a percentage of the revenue earned from the airport`s operations. They are also responsible for funding and executing all development projects at the airport, including expanding the terminal, upgrading the runway and taxiways, and improving the airport`s overall infrastructure.
What is the Controversy Surrounding the Agreement?
The Mumbai airport concession agreement has been a subject of controversy since it was signed. Critics argue that the deal was completed without proper consultation or transparency, and that it may lead to a monopoly in the airport sector. They also question Adani`s experience in the aviation sector, as the company has only recently entered the industry.
Supporters of the agreement argue that it will bring much-needed investment and development to the airport, improving the experience for passengers and increasing the airport`s capacity. They also point out that Adani has experience in infrastructure development, and that the company`s investment in the airport will create job opportunities and boost the local economy.
The Mumbai airport concession agreement is a significant development in the airport industry in India. While there are valid concerns about the deal`s transparency and potential impact on the sector, there is also potential for positive change and development for the airport and the region as a whole. As the agreement moves forward, it will be essential to monitor its implementation and impact on the airport and its passengers.