Adani to take-over Ahmedabad, Lucknow and Mangaluru airports for 50 years

February 14, 2020: Airports Authority of India (AAI) signed three concession agreements with Airports Adani Enterprise for operations, management and development of Ahmedabad, Lucknow and Mangaluru airports through PPP mode.

Airports Adani Enterprise is required to take-over the Ahmedabad, Lucknow and Mangaluru airports within 180 days from February 14, 2020, and will operate, manage and develop the airports for the next 50 years.

Bidding process
A bidding process for six airports (viz. Ahmedabad, Lucknow, Mangaluru Guwahati, Jaipur and Thiruvananthapuram,) was initiated by AAI during December 2018 and Adani Enterprises emerged the highest bidder for these airports. During July 2019, the central government conveyed the approval for the award of concession to the highest bidder for Ahmedabad, Lucknow and Mangaluru airports. For the other three airports, the consent of the central government is pending.

AAI today signed 3 Concession Agreements with the Adani Airports Ltd. for Operations, Management & Development of Ahmedabad, Lucknow & Mangaluru Airports through PPP mode. The agreements were signed in presence of Chairman, AAI & other senior officials of AAI & Adani Enterprises. pic.twitter.com/bjvO7hU0q1

— Airports Authority of India (@AAI_Official) February 14, 2020

AAI’s domestic fee
Airports Adani Enterprise will pay AAI a per passenger domestic fee of Rs 177, Rs 171 and Rs 115 for Ahmedabad, Lucknow and Mangaluru Airports correspondingly and in case of international passengers, the company will pay two times of per passenger domestic fee. Further, the per passenger fee will be revised annually taking into account the variation in the CPI (IW).

“The concession fee that AAI would receive will be utilized for the maintenance and development of other brownfield airports and also the development of RCS –UDAN and other Greenfield airports across the country,” said the release.

Name of Airports
The concessionaires are Adani Ahmedabad International Airport Ltd, Adani Lucknow International Airport Ltd and Adani Mangaluru International Airport Ltd. The agreements were signed by B.K. Mehrotra, executive director, Strategic Initiative Unit, AAI and Behnad Zandi, chief executive officer, Airports Adani Enterprise at corporate headquarters of AAI.