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Cabinet approves leasing out of Jaipur, Guwahati, Thiruvananthapuram airports to Adani Group

BusinessToday.In     August 19, 2020

The Cabinet, chaired by Prime Minister Narendra Modi, on Wednesday approved the proposal for leasing out three airports, Jaipur, Guwahati and Thiruvananthapuram, to Adani Enterprises that won these in an auction last year. Billionaire Gautam Adani-led private developer had emerged as the successful bidder in a global competitive bidding conducted by the Airports Authority of India (AAI). 

The AAI will get an upfront amount of Rs 1,070 crore from handing over the airports to the private developer, said Union minister Prakash Javadekar.

"The upfront Rs 1,070 crore that will come to AAI will be used for developing airports in smaller airports. The other benefit is travellers will get better facilities," the minister said while briefing media after the Cabinet meeting held earlier today.

The Adani Group has won rights to operate, maintain and develop these airports in a public private partnership mode. The company has the right to operate these airports for 50 years.

The leasing out of these airports was part of the original six that were awarded to the Adani Group. The Ahmadabad, Lucknow and Mangalur airports were awarded earlier to the conglomerate.

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"The Union Cabinet accorded its approval for leasing of three AAI airports namely, Jaipur, Guwahati and Thiruvananthapuram for operation, management and development to Adani Enterprises Ltd, who is declared as the successful bidder in a global competitive bidding conducted by the Airports Authority of India, for a period of fifty years," Ministry of Civil Aviation notified.

These projects will bring efficiency in service delivery, expertise, enterprise and professionalism apart from harnessing the needed investments in the public sector, it added.

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Airports Authority of India has released request for proposal in December 2018 through global competitive bidding wherein per passenger fee was the bidding parameter. The technical bids were opened on February 16, 2019 and the financial bids of the qualified bidders were opened on February 25, 2019. Adani Enterprises has won all the bids by quoting highest per passenger fee for all the three airports i.e. Jaipur, Guwahati and Thiruvanathapuram.

Boosted by the development, shares of Adani Enterprises jumped 11.86 per cent to close at Rs 239.05 apiece on the Bombay Stock Exchange. 

By Chitranjan Kumar

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