This document summarizes the Indian Ministry of Civil Aviation's response to Lok Sabha Unstarred Question No. 4622 regarding capital investment in the modernization of airports, specifically those operated by the Adani Group. The response, delivered on August 21, 2025, addresses capital investments made by the Adani Group since taking over airport operations, comparing these investments to other airports, and verifying alignment with commitments made during the lease awarding.
The Ministry states that airport infrastructure development is a continuous process driven by traffic demand, commercial viability, operational safety, and airline needs. Development occurs in phases, contingent on land availability, viability, and operational requirements. Capital expenditure (CAPEX) at Joint Venture (JV), Public-Private Partnership (PPP), and leased airports is significantly higher than at airports operated by the Airports Authority of India (AAI). The Airports Economic Regulatory Authority of India (AERA) considers these varying CAPEX profiles when determining aeronautical tariffs, balancing the interests of service providers and end-users.
Since taking over operations of seven airports, the Adani Group has invested approximately Rs. 16,300 crore in capital expenditure. The Adani Group, as concessionaire, is obligated to implement the Master Plan and Development Works as stipulated in the Operation, Management Development Agreement (OMDA) and Concession Agreement. AAI periodically monitors the performance and compliance of these concessionaires through independent engineers, auditors, and inspections.
Key Entities Referenced
Ministry of Civil Aviation: The Indian government ministry responsible for the formulation and administration of the policies, plans and programmes relating to the development and regulation of civil aviation in the country.
Adani Group: An Indian multinational conglomerate that operates several airports in India under concession agreements.
Airports Authority of India (AAI): A statutory body responsible for creating, upgrading, maintaining and managing civil aviation infrastructure in India.
Airports Economic Regulatory Authority of India (AERA): The regulatory body that determines the tariff for aeronautical services at major airports in India.
Public Private Partnership (PPP): A collaborative venture between a government agency and a private sector company, often used for infrastructure projects.
Capital Expenditure (CAPEX): Funds used by a company to acquire or upgrade physical assets such as property, buildings, or equipment.
Operation, Management Development Agreement (OMDA): An agreement outlining the terms and conditions for the operation, management, and development of an airport.
Shri Murlidhar Mohol: Minister of State in the Ministry of Civil Aviation
GOVERNMENT OF INDIA
MINISTRY OF CIVIL AVIATION
LOK SABHA
UNSTARRED QUESTION NO. : 4622
( TO BE ANSWERED ON THE 21st August 2025 )
CAPITAL INVESTMENT IN MODERNISATION OF AIRPORTS
4622. SHRI CHAMALA KIRAN KUMAR REDDY
Will the Minister of CIVIL AVIATION
be pleased to state:-
(a) the details of the amount of capital investment made in the modernisation of each airport
operated by Adani Group since takeover in comparison to other airports;
(b) whether this investment is in line with the commitments made at the time of awarding the
lease and if so, the details thereof; and
(c) whether the Government has prepared a comparative investment analysis between Adani
Group operated, AAI operated and other PPP airports and if so, the details thereof?
ANSWER
Minister of State in the Ministry of CIVIL AVIATION (Shri Murlidhar
Mohol)
(a) to (c): Expansion, modernisation and development of airport infrastructure is a
continuous process, which is undertaken by the Airport Operators/Developers concerned
depending upon traffic demand, commercial feasibility, operational requirements for safety of
aircraft operation and demand from airlines etc. Development works are taken up in a phased
manner depending upon availability of land and viability, as well as other facilities with
reference to intended aircraft operations.;
;
The Capital Expenditure (CAPEX) infusion for infrastructure upgradation at Joint Venture
(JV)/Public Private Partnership (PPP)/Leased airport is substantially higher in comparison to
Airports operated by Airports Authority of India (AAI). Airports Economic Regulatory
Authority of India (AERA) takes into account this different capital expenditure profile of
each major airport, while determining aeronautical tariff, optimally balancing the interest of
service provider and the end user. ;
;
CAPEX of approximately Rs. 16,300 crore has been made by seven concessionaire/airport
operators under Adani Group since taking over of these 7 airports.;
The Concessionaire of these airports are obligated to implement the Master Plan and
Development Works as stipulated in the Operation, Management & Development Agreement
(OMDA) and Concession Agreement, as applicable. The performance and compliance by
Concessionaires is subjected to periodical monitoring by AAI through Independent
Engineers, Auditors, Inspections etc.
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