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Sunday, October 13, 2024

India’s Congress Raises Concerns Over Adani’s Proposed Management of JKIA

The proposed takeover of Jomo Kenyatta International Airport (JKIA) by the Indian firm Adani Group has encountered new opposition, as concerns have been raised by India’s Congress.

On September 3, 2024, Indian National Congress General Secretary Jairam Ramesh voiced these concerns in light of protests from aviation workers in Kenya against the takeover.

Also Read – Airport Workers Threaten to Paralyze Operations Over Adani JKIA Deal

Ramesh criticized the proposal, warning that it could “lead to anger against India and the Indian government.” He stated, “This is a matter of grave concern for India, because the non-biological Prime Minister’s friendship with Mr. Adani is now globally well known. The protests can therefore easily convert into anger against India and the Indian government.”

Ramesh pointed to recent projects by the Adani Group in neighboring countries that ignited protests against their governments. He specifically referenced a contract between former Bangladeshi Prime Minister Sheikh Hasina’s government and Adani’s coal plant in Jharkhand, which became a critical factor in the unrest that ultimately led to her resignation.

He further criticized the Indian Prime Minister’s relationship with the Adani Group, arguing that it has diminished India’s global standing.

“Today, the Prime Minister’s collusion with the Adani Group has contributed to the erosion of India’s strength and led to unprecedented setbacks on the global stage—just one of the many sacrifices the country has made due to the non-biological PM’s special friendship,” he added.

These remarks came after Adani Enterprises established a Kenyan subsidiary to further its efforts to take over the management of JKIA. Adani Group launched a new company in Kenya called Airports Infrastructure PLC (AIP) through its step-down subsidiary, Global Airports Operator L.L.C. (GAO). This new entity aims to manage, upgrade, and modernize airports throughout the country.

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Adani announced the creation of AIP in a notice dated August 30, which it communicated to both the Bombay Stock Exchange (BSE) and the National Stock Exchange of India Limited (NSE).

Although Adani has not yet initiated business operations, AIP is officially registered under the Companies Act of 2015 and is wholly owned by Global Airports Operator L.L.C.

Furthermore, no cash consideration or share swap was involved in the formation of this subsidiary, as GAO retains full ownership of the share capital.

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