AAI signs agreement with Adani Group for 3 airports
By M4G Bureau - January 25, 2021
The Adani Group will operate, manage and develop the airports for the next 50 years, in accordance with the terms and conditions specified in the Concession Agreements
The Airports Authority of India has signed Concession Agreements for Operations, Management and Development of three airports, namely the Guwahati, Jaipur and Thiruvananthapuram airports through PPP mode. The agreement was signed with the Concessionaires i.e. the Adani Guwahati International Airport Ltd, Adani Jaipur International Airport Ltd and Adani Thiruvananthapuram International Airport Ltd respectively.
The agreements were signed by N.V. Subbarayudu, Executive Director, Strategic Initiative Unit on behalf of AAI, and Behnad Zandi, Chief Executive Officer, Adani Airports Limited, at the Corporate Headquarters of AAI in the presence of Shri Arvind Singh, Chairman, AAI; Board Members and other senior officials of AAI and Adani Enterprises Limited.
The concessionaire of Guwahati airport shall pay AAI a per passenger fee of Rs.160.00 for domestic travel and Rs.320 for international travel. Similarly, the concessionaires for Jaipur and Thiruvananthapuram airports will pay AAI a per passenger fee of Rs.174 and Rs.168 respectively for domestic and Rs.348 and Rs.336 respectively for international. The per passenger domestic fee will be revised annually taking into account the variation in the CPI (IW).
The concessionaires are required to take up the Guwahati, Jaipur and Thiruvananthapuram airports fulfilling certain conditions precedent within 180 days,starting January 19, 2021 and will operate, manage and develop the airports for the next 50 years, in accordance with the terms and conditions specified in the Concession Agreements.
An International competitive bidding process for PPP transaction for six airports (viz. Ahmedabad, Lucknow, Mangaluru, Guwahati, Jaipur and Thiruvananthapuram,) was initiated by AAI during December 2018 and Adani Enterprises Limited (AEL) emerged as the highest bidder for these three airports along with Mangaluru, Lucknow and Ahmedabad airports.
Mangaluru, Lucknow and Ahmedabad airports were handed over to the Concessionaires earlier.
Subsequent to approval received from the Government during August 2020, Letters of Awards were issued to AEL for Guwahati, Jaipur and Thiruvananthapuram airports. After getting security clearance from AEL, the Concession Agreements were signed.
Arvind Singh, Chairman, AAI speaking during the occasion said, "It is a significant occasion today when we complete this round of signing of concession agreements for three airports, under the PPP mode. Looking forward to healthy participation from theprivate sector in the growth story of Indian civil aviation."
The concession fee that would be received by AAI after leasing out the six airports will be used for the maintenance and development of other brownfield airports and also for further development of RCS and Greenfield airports throughout the country.