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Thiruvananthapuram, Jaipur, Guwahati airports to be leased out to Adani Enterprises
New Delhi, August 19, 2020
The operation, management and development of the Thiruvananthapuram, Jaipur and Guwahati airports will be given to Adani Enterprises Limited under the Public Private Partnership (PPP) mode on a 50-year lease.
This follows the approval given by the Union Cabinet today to a proposal for leasing out the three airports of the Airports Authority of India (AAI) through the PPP mode for 50 years.
Adani Enterprises Ltd had earlier been declared as the successful bidder in global competitive bidding conducted by AAI.
"These projects are expected to bring efficiency in service delivery, expertise, enterprise and professionalism apart from harnessing the needed investments in the public sector," an official press release said.
The Government had leased out the AAI's airports in Delhi and Mumbai on PPP for operation, management and development about a decade ago.
"While these PPP experiments have helped create world-class airports and helped in the delivery of efficient and quality services to the passengers, it has also helped AAI enhance its revenues and focus on developing airports and air navigation infrastructure in the rest of the country," the release said.
The revenue received from PPP partners enabled AAI to create infrastructure facilities in Tier-2 and Tier-3 cities and also to upgrade their airports to international standards.
The PPP airports in India are consistently ranked among the top 5 in their respective categories by the Airports Council International (ACI) in terms of Airport Service Quality (ASQ).
Therefore, the Government decided to lease out more airports of AAI for the operation, management and development under PPP through the Public-Private Partnership Appraisal Committee (PPPAC). The government also constituted an Empowered Group of Secretaries (EGoS) to decide on any issue falling beyond the scope of the PPPAC.
The entire bidding process was carried out under the supervision and directions of EGoS which comprised representatives of NITI Aayog, Department of Expenditure and the Department of Economic Affairs (DEA) of the Ministry of Finance (MoF).
AAI had released Request for Proposal on December 14, 2018, through global competitive bidding with per passenger fee as the bidding parameter. The technical bids were opened on February 16, 2019 and the financial bids of the qualified bidders were opened on February 25-26.
Adani Enterprises won all the bids by quoting the highest per-passenger fee for all the three airports.