Indian state government to challenge Adani's airport win in court

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The High Court of Kerala, a state in south-west India, has ruled that the Airports Authority of India's decision to award a concession contract to develop, operate and manage Thiruvananthapuram international airport to Adani Group is temporary and subject to final decision of the court.

This action was brought about by the Kerala State Industrial Development Corporation (KSIDC), which petitioned the court to intervene. The government entity believes that the entire tender process was "arbitrary, unreasonable and in violation of all principles of fairness and natural justice", strongly opposing the award to a company with no prior experience in airport management.

KSIDC participated in the tender, with the government planning to float a public-private special purpose vehicle to run the airport.

Adani Group has won concessions to operate six airports across India, proposing higher per-passenger fee payments to the Airports Authority of India (AAI) than any other participants in all six tenders. KSIDC has contended that the technical and financial qualifications were altered at the last minute to enable the Group's success. 

The Chief Minister of Kerala has also written to the Prime Minister of India Narendra Modi questioning a tender process that allowed a single private bidder with no prior experience to win all six concessions.

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