AAI signs concession agreements for Ahmedabad, Lucknow and Mangaluru Airports

New Delhi February 14, 2020 Photo(s): By AAI
Arvind Singh, Chairman, AAI during signing of three concession agreements for Operations, Management and Development of Ahmedabad, Lucknow and Mangaluru airports by B.K. Mehrotra, Executive Director, Strategic Initiative Unit on behalf of AAI and Behnad Zandi, Chief Executive Officer - Airports Adani Enterprise Ltd.

Airports Authority of India signed three Concession Agreements today 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. The agreements were signed by B.K. Mehrotra, Executive Director, Strategic Initiative Unit on behalf of AAI and Behnad Zandi, Chief Executive Officer - Airports Adani Enterprise Ltd. at Corporate Headquarters of AAI in the presence of Chairman, AAI, Board Members and other senior officials of AAI and Adani Enterprises Limited.

The concessionaires are required to take-over the Ahmedabad, Lucknow and Mangaluru airportsafter fulfilling certain conditions precedents within 180 days from 14th February, 2020and will operate, manage and develop the airports for next 50 years, in accordance with the terms and conditions specified in the Concession Agreements.

An International competitive bidding process for PPP transaction for six airports (viz. Ahmedabad, Lucknow, Mangaluru Guwahati, Jaipur and Thiruvananthapuram,) was initiated by AAI during December 2018 and Adani Enterprises Limited emerged highest bidder for these airports. During July 2019, the Central Government conveyed the approval for award of concession to the Highest Bidder for Ahmedabad, Lucknow and Mangaluru airports. In respect of remaining three airports, the approval of the Central Government is awaited.

The concessionairesshall pay AAI a per passenger domestic fee of 177.00, 171.00 and 115.00 for Ahmedabad, Lucknow and Mangaluru Airports respectively (both embarking and disembarking passengers) and in case ofinternational passengers, the Concessionaire will pay two times of per passenger domestic fee. Further, the per passenger fee will be revised annually taking into account of the variation in the CPI (IW).

The concession fee that AAI would receive will be utilized for the maintenance and development of other brownfield airports and also development of RCS–UDAN and other Greenfield airports across the country.