The Union Cabinet chaired by the Prime Minister, Shri Narendra Modi has approved the proposal for leasing out three airports namely Jaipur, Guwahati, and Thiruvananthapuram airports of Airports Authority of India (AAI) through Public-Private Partnership (PPP).
The Union Cabinet accorded its approval for leasing of three AAI airports namely, Jaipur, Guwahati and Thiruvananthapuram for Operation, Management and Development to M/s Adani Enterprises Ltd, who is declared as the successful bidder in a Global Competitive Bidding conducted by the Airports Authority of India, for a period of fifty years.
These projects will bring efficiency in service delivery, expertise, enterprise, and professionalism apart from harnessing the needed investments in the public sector.
The government had leased out the Airports Authority of India’s airports at Delhi and Mumbai on Public-Private Partnership 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 airport passengers, it has also helped AAI in enhancing its revenues and focusing on developing airports and Air Navigation infrastructure in the rest of the country. Revenue received by AAI 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 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 PPPAC.
PPPAC approved the transaction documents. The entire bidding process was carried out under the supervision and directions of EGoS which comprised representatives of NITI Aayog, Department of Expenditure, and Department of Economic Affairs (DEA) of Ministry of Finance (MoF).
Who won rights?
Adani Enterprises had won the rights to run six airports—Lucknow, Ahmedabad, Jaipur, Mangaluru, Thiruvananthapuram, and Guwahati—through PPP model after a competitive bidding process in February 2019.
AAI to get ₹1,070 crore
The Minister said the AAI will receive ₹1,070 crores as an upfront amount from the private operator for leasing the airports at Jaipur, Guwahati, Thiruvananthapuram, and this fund will be used to develop airports in smaller cities.