AAI signs concession agreements with Adani Group for 3 airports

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The Airports Authority of India (AAI) has signed three concession agreements with Adani Enterprises for operations, management and development of Ahmedabad, Lucknow and Mangaluru airports.

In a statement, the AAI said that the agreements were signed on Friday with the group's subsidiary companies, namely, Adani Ahmedabad International Airport Ltd, Adani Lucknow International Airport Ltd, and Adani Mangaluru International Airport Ltd.

The concessionaires are required to take-over the three airports after fulfilling certain conditions precedents within 180 days from February 14 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.

The agreements were signed by BK Mehrotra, Executive Director, Strategic Initiative Unit on behalf of AAI and Behnad Zandi, Chief Executive Officer - Airports Adani Enterprise Ltd at Corporate Headquarters of AAI in the presence of Chairman, AAI, Board Members and other senior officials of AAI and Adani Enterprises Limited.

An International competitive bidding process for PPP transaction for six airports -- Ahmedabad, Lucknow, Mangaluru Guwahati, Jaipur, and Thiruvananthapuram -- was initiated by the AAI during December 2018 and Adani Enterprises Limited had emerged as 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. In respect of the remaining three airports, the approval of the Central Government is awaited.

The concessionaires shall pay AAI a per passenger domestic fee of Rs 177, Rs 171 and Rs 115 for Ahmedabad, Lucknow and Mangaluru Airports respectively (both embarking and disembarking passengers) and in case of international passengers, the Concessionaire will pay two times of per passenger domestic fee. Further, the per passenger fee will be revised annually taking into account of 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," the statement read.