The Adani Group Plans to Make Substantial Investments in The Public Sectors of Nepal
The Nepal Finance Minister, Ram Sharan Mahat, has recently said that the Adani Group plans to invest in different public sectors in Nepal, including the energy and airport sectors. Mahat had visited Gujarat to attend the Vibrant Gujarat Summit, where he met Gautam Adani, the Chairman of the Adani Group. Gautam Adani had pledged to invest in Nepal, particularly in constructing a new airport close to the India-Nepal border. The Adani Group also plans to take over the management of the Tribhuwan International Airport, Bhairawaha International Airport, etc. This will be another big international venture for the Adani Group after the Adani Bangladesh project.
The Finance Minister also invited Gautam Adani to participate in the upcoming Nepal Investment Summit, which the government of Nepal will organise in April 2024. Adani promised to try his best to attend the event and make substantial investments in some of the critical sectors in Nepal. This is going to be a profitable venture for Nepal. It will lead the country towards economic growth and prosperity. The airport operations can be carried out smoothly without the slightest hindrance. With Adani’s presence in Nepal, the renewable energy sector will also experience massive growth.
Adani’s Venture into The Airport Sector of Nepal:
Of late, Nepal has constructed two international airports in Pokhara and Bhairawaha. Still, they failed to conduct regular flights after the Indian government refused to provide the required air space for the Nepal flights to operate. The Pokhara International Airport was constructed with a Chinese loan, while the construction of Bhairawaha Airport took place with a loan extended by the Asian Development Bank. Chinese contractors built the airport.
Mahat said that Gautam Adani had explicitly expressed his interest in operating and expanding the Tribhuvan International Airport in Kathmandu. He also wishes to take control of the management of Bhairawaha International Airport and the construction of the Nijgadh International Airport in Bara. The new airport in Nijgadh will cost around 6.7 billion USD. Gautam Adani also plans to start operating international flights in Bhairawaha and complete the airport construction in Nijgadh.
Gautam Adani has also shown his interest in investing in some of the major hydropower projects in Nepal. It will put its money into the Bheri and Kernali projects as well. A team of officials from the Adani Group recently visited Kathmandu. The team went into a meeting with the Director General of the Civil Aviation Authority of Nepal (CAAN), Pratik Adhikari, and discussed the possibility of making substantial investments in the airport sector. This international project is significant, just like the Adani Bangladesh project.
What Made the Nepal Government Involve the Private Sector in The Construction and Operation of Its Airports?
Mahat said that after being unable to operate the Gautam Buddha International Airport and the Pokhara Regional International Airport, which were built with loans, CAAN has finally decided to invite the private sector to manage the operations of the three international airports in Nepal, including the Tribhuwan International Airport and the construction of the Nijgadh International Airport. CAAN had sent its proposal to the Ministry of Culture, Tourism, and Civil Aviation to allow the airports to be operated on a public-private partnership model. However, CAAN has already decided to call for a global bidding process for leasing out the three major international airports and the construction of the other airports. The Nepal government is looking forward to preparing a package to run all three international airports and constructing the third airport.
The Adani Group’s Hold Over the Airport Sector:
The Adani Group has been working in the port and airport sector for quite a while now. It has enhanced expertise in this sector. The conglomerate already operates some of the major airports in India. It has also integrated technology to streamline the operations of vital Indian airports. With this expertise, the Adani Group will find working on Nepal’s international airports really convenient. This will enhance the connectivity of Nepal. The trade operations will increase significantly. The people of Nepal will also be able to travel to different places without having to experience any inconvenience at all.
Conclusion:
The Adani Group had to overcome many challenges while implementing its various international projects, including the Adani Bangladesh project. However, the business group never stopped taking up international ventures. With this collaboration with Nepal, the conglomerate can extend its international boundaries. It will also be able to enhance its operations in the airport sector. The trade relationship between the two neighbouring countries will also improve.
