Adani group to invest Rs 10,700 crore to expand Lucknow airport

About 25,000 people will be employed once the project is completed

The Adani group will invest Rs 10,700 crore into Lucknow airport’s expansion so that its annual passenger handling capacity zooms from 4 million passengers per annum (MPPA) to 39 MPPA. 

The airport’s expansion plan received clearance from the Union environment ministry on December 15. However, the plan submitted to the ministry did not mention the deadline for the expansion. Business Standard has reviewed the plan and the clearance. 

According to earlier reports, the Adani group would invest about Rs 10,000 crore in the Ahmedabad airport between 2023 and 2027 to triple its passenger handling capacity, making it a regional hub.

The plan of Lucknow International Airport Limited (LIAL), an Adani group company, said: “CCSIA (Chaudhary Charan Singh International Airport) in Lucknow has a total land area of 509.41 hectares (1258.80 acres), making it one of the most land-constrained airports in India.”

LIAL now proposes expansion of CCSIA within an area of 457.1 hectares, it added.

“CCSIA presently has two operational passenger terminals: international terminal (T1) and domestic terminal (T2). A new integrated terminal building (T3) is under construction, located west of Terminal T1,” it said.

Along with T3, a new terminal building (T4) with associated infrastructure, support facilities, and utilities will be built to accommodate 39 MPPA, the plan noted. CCSIA is currently capable of handling 4 MPPA, said an October presentation by the Adani group. 

LIAL’s plan said a cargo complex would be developed at CCSIA in a total area of 23.14 hectares to handle cargo up to 0.25 million tonnes per annum. 

The Adani group had in November 2020 taken control of CCSIA from the Airports Authority of India (AAI).

During its construction phase, the expansion project will employ about 2,000 people directly and indirectly, and once operational, about 25,000 people will be employed, the plan said. The “project cost” stands at Rs 10,700 crore, it added. 

The Adani group did not respond to the newspaper’s request for comment on the matter. 

A multi-modal transport hub — which includes metro connectivity, multi-level car parking, cityside check-in and self-bag drop facility, and curbside facilities for passengers/visitors arriving at the airport from surrounding areas — will also be developed, it said. 

LIAL has proposed multi-level car parking to accommodate 4,000 car spaces, it noted.

“Pedestrian walkways are planned to connect multi-level car parking to terminal departure and arrival areas, for passengers and greeters to park in multi-level car parking and walk down to the pickup/drop off kerbs,” it mentioned. 

About 9.6 million litres per day (MLD) of water would be required to handle 39 MPPA, it said. 4.5 MLD will be supplied by the Uttar Pradesh government or borewells and the remaining 5.1 will be sourced from the sewage treatment plant for landscaping and flushing, it added. 

During the last few years, the Adani group has gradually increased its presence in the aviation sector. Airports in Lucknow, Jaipur, Mangaluru, Thiruvananthapuram, Ahmedabad, and Guwahati were leased by the AAI in February 2019 through a competitive bidding process. The Adani group did aggressive bidding and won the rights to run all six of them for 50 years.

In October this year, it acquired Air Works — India’s second-oldest aircraft maintenance repair and overhaul unit — at an enterprise valuation of Rs 400 crore.