Adani group, AAI ink pacts for managing three airports

Nearly a year after it won the bids, Adani Enterprises on Friday inked the concession agreements with the Airports Authority of India (AAI) to operate, manage and develop the airports at Mangaluru, Lucknow and Ahmedabad.

The signing of the concession agreements paves the way for Adani Enterprises to take over the three airports within the next six months and operate, manage and develop them for a period of 50 years.

The concession agreements were signed by B K Mehrotra, Executive Director, Strategic Initiative Unit, AAI and Behnad Zandi, Chief Executive Officer (Airports), Adani Enterprises Limited here.

“Airports Authority of India signed three Concession Agreements for Operations, Management and Development of Ahmedabad, Lucknow and Mangaluru airports through PPP mode with the Concessionaires i.e. Adani Ahmedabad International Airport Ltd, Adani Lucknow International Airport Ltd, and Adani Mangaluru International Airport Ltd respectively,” an AAI statement said.

Under the international bidding process for six airports – Ahmedabad, Lucknow, Mangaluru, Guwahati, Jaipur, and Thiruvananthapuram – Adani Enterprises had emerged as the highest bidder in February last year.

Bidding aggressively, Adani Enterprises had offered Rs 115 per domestic passenger for Mangaluru and Rs 171 for Lucknow and Rs 177 for Ahmedabad and double the fee for international travelers.

In July last year, the Union Cabinet had approved the proposal to lease out the airports at Mangaluru, Lucknow, and Ahmedabad to Adani Enterprises. The Ahmedabad-based corporate group had also won the bids for the airports at Jaipur, Guwahati, and Thiruvananthapuram but the relevant government approvals are awaited due to certain legal issues.

In August last year, the Adani Enterprises had registered a new subsidiary – Adani Airports Limited – to manage, develop and operate airports and announced investments to the tune of Rs 10,000 crore till 2026.

The new company's aim includes acquiring, promoting, operating, maintaining, developing, designing, constructing, upgrading, modernising, renovating, expanding and managing airports in India and abroad.