Gautam Adani, a billionaire industrialist from India, has set his sights on Nepal’s aviation industry. His Adani Group is exploring the possibility of managing and constructing airports in the Himalayan nation.
This development comes amidst the Civil Aviation Authority of Nepal (CAAN) mulling over the Public Private Partnership (PPP) model to attract private investment for airport development and operation. CAAN has submitted a proposal to the Ministry of Culture, Tourism and Civil Aviation seeking permission to operate four airports under the PPP model.
The proposal includes Tribhuvan International Airport (TIA) in Kathmandu, the country’s only international airport currently, alongside three others – Pokhara Regional International Airport (PRIA), Gautam Buddha International Airport (GBIA), and the proposed Nijgadh International Airport.
Adani’s interest stems from his vast experience in the Indian aviation sector. Adani Airport Holdings Limited, a subsidiary of the Adani Group, already manages seven international airports in India, including Chhatrapati Shivaji Maharaj International Airport in Mumbai and Sardar Vallabhbhai Patel International Airport in Ahmedabad.
While CAAN has expressed its intention to involve the private sector, the finalization of the PPP model is still pending. “We have decided to bring in the private sector at the airport,” CAAN Director General Pradeep Adhikari told Adani Group representatives during a recent meeting. “We will open a global tender once the modality is ready.”
However, the path to implementation might not be smooth. The proposal needs approval from the Cabinet, followed by a competitive selection process for the chosen company. Additionally, concerns have been raised about the inclusion of Nijgadh International Airport, which is yet to be built, in the PPP package, especially considering the lack of international flights from PRIA and GBIA.
CAAN spokesperson Jagannath Niraula clarified that the selection will be based on merit and not mere interest. “It is not that a company can get the tender only by wishing,” Niraula emphasized. “They will be selected through global competition.”
Prime Minister Pushpa Kamal Dahal has also expressed support for private sector involvement in Nepal’s aviation sector. However, the Supreme Court’s past intervention in a similar attempt in 2012 serves as a reminder of the potential legal hurdles that could arise.
With Adani Group’s interest and CAAN’s push for the PPP model, Nepal’s aviation sector is poised for significant transformation. However, navigating the complexities of the process and ensuring transparency will be crucial for a successful outcome.
Only time will tell if this Indian tycoon’s foray into Nepal’s aviation sector will take off as planned.
