Adani Group To Redevelop 3 Airports In India

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The Cabinet, chaired by Prime Minister Narendra Modi, on Wednesday approved the proposal for leasing out three airports, Jaipur, Guwahati and Thiruvananthapuram, to Adani Enterprises.
The three airports will be leased for operation, management, and development in public-private partnership (PPP) model to Adani Enterprises
The company has the right to operate these airports for 50 years.

Why Adani?

Airports Authority of India has released request for proposal in December 2018 through global competitive bidding wherein per passenger fee was 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, 2019.
Adani Enterprises has won all the bids by quoting highest per passenger fee for all the 6 airports.
Reports suggest Adani quoted a fee of Rs 177 per passenger for Ahmedabad.
Chaudhary Charan Singh International Airport in Lucknow,
Sardar Vallabhbhai Patel International Airport in Ahmedabad,
Jaipur International Airport,
Mangalore International Airport,
Trivandrum International Airport in Thiruvananthapuram,
Lokpriya Gopinath Bordoloi International Airport in Guwahati
Contracts for the Ahmedabad, Lucknow and Mangalore airports were signed earlier this year.
But Adani is yet to take over their operations because of the disruptions from the coronavirus pandemic.

The Airports Authority of India (AAI) will get ₹1,070 crore upfront from handing over the airports for redevelopment.
The upfront ₹1,070 crore that will come to AAI will be used for developing airports in smaller towns.

Airports are leased out to private players for redevelopment on the basis of revenue sharing arrangement with the AAI.
In addition to imposing a user fee on passengers, the private developer also has the right to establish new revenue streams through measures such as real estate developmentaround the airport.
In 2017-18, around 30 million domestic and international passengers flew through the 6 airports won by Adani Enterprises.
Passenger traffic has grown 78% at these airports since 2014-15.

There would be efficiency, expertise, and professionalism..
Apart from this, the public sector needed investments.
PPP in airport infrastructure projects has so far ensured world-class infrastructure at airports.
The quality of services to airport passengers has also improved like- Mumbai, Delhi, Bengaluru, Hyderabad.
Airports Council International (ACI) has been recognizing PPP airports in India as top-ranked airports in Asia and the world in terms of Airport Service Quality.
The PPP model has helped AAI enhance revenues and utilize funds for developing and upgrading other airports across India.

“In view of the unilateral decision taken by the Government of India without giving credence to the cogent arguments put forward by the State government,
It will be difficult for us to offer co-operation to the implementation of the decision, which is against the wishes of the people of the State,“ Vijayan said in a letter to Modi.