Adani Enterprises Ltd. (AEL), the flagship company of Adani Group has signed three agreements with Airports Authority of India (AAI). The agreements are for developing, managing, and operating Ahmedabad, Lucknow and Mangaluru airports. Agreements have been signed by wholly-owned subsidiaries of AEL namely- Adani Ahmedabad International Airport, Adani Lucknow International Airport and Adani Mangaluru International Airport. The projects have been won through a stiff International bidding process.
Adani’s Scope of Work for three Airports
Adani Enterprises’ scope of project includes design, development, financing, construction, and expansion of airports in phased manner. Operations, maintenance and management of the Airport. Plus the development operation and maintenance of city side.
Details of Agreement between AAI & Adani
As per the agreement, AEL with be taking over the airports within 180 days effective from 14th February 2020. Thereafter they will operate and manage the airports for next 50 years of lease period. Adani will pay Rs 3,600 crore to AAI as part of the lease and will be spending Rs 6,000 crore on the airports over next seven years.
AEL will pay AAI per passenger domestic fee of Rs.177.00, Rs.171.00 and Rs.115.00 for Ahmedabad, Lucknow and Mangaluru Airports respectively. In case of international passengers, the fee amount will be double of domestic fee. The passenger fee is subjected to be revised annually as per variation in Consumer Price Index for Industrial Workers.
More Airports Business to Come
In 2018, Indian government had decided to privatise airports at Lucknow, Ahmedabad, Jaipur, Mangaluru, Thiruvananthapuram, and Guwahati. Then in December 2018, AAI had initiated bidding process for six airports. Finally, in July 2019 central Government conveyed the approval for Ahmedabad, Lucknow and Mangaluru airports. Approval is awaited for Jaipur, Thiruvananthapuram and Guwahati airports.