Adani wins bid for five airports including Thiruvananthapuram airport – UKMALAYALEE

Adani wins bid for five airports including Thiruvananthapuram airport

Tuesday 26 February 2019 2:16 AM UTC

NEW DELHI Feb 26: The Adani group has won the bid to operate five out of six airports that were put for privatisation by the central government, a senior official of the Airports Authority of India (AAI) said Monday.

Adanis were the highest bidder for Ahmedabad, Thiruvananthapuram, Lucknow, Mangaluru and Jaipur airports, the official said, adding the bid for the Guwahati airport will be opened on Tuesday.

AAI chose the winner on the basis of “monthly per-passenger fee”. The official said the bids put by Adani group were “very aggressive” as compared to other bidders.

The five airports would be handed over to Adani group after completion of formalities, the AAI official said.

A total of 32 technical bids were received from 10 companies to operate six airports that are currently under AAI’s management.

In November last year, the government had cleared a proposal for managing six AAI-run airports on public-private partnership (PPP) basis.

Ahmedabad and Jaipur airports received seven bids each. Lucknow and Guwahati received six bids each. Mangaluru and Thiruvananthapuram received three bids each.

The move to manage the six airports on PPP basis, according to AAI, is part of an initiative to provide world-class infrastructure and services to stakeholders.

The AAI did not open the bid for the Guwahati airport in view of a stay granted by the Guwahati High Court against the privatisation process, at least two people briefed on the bid said, asking not to be named.

AAI had sought bids for the operation and management of existing airport assets as well as their upgradation and development of additional air-side terminals, city-side and land-side infrastructure for 50 years for Ahmedabad, Guwahati, Jaipur, Lucknow, Mangaluru and Thiruvananthapuram airports.

Thus Adani will get the airports on 50 year lease based on PPP model.

Adani group had defeated two groups that had bid for the Thiruvananthapuram airport. They were State-owned KSIDC’s Trivandrum International Airport Ltd and GMR, which is in charge of the operation of Delhi-Hyderabad airports.

The auction price bid by Adani group was Rs 168 per month per passenger. KSIDC’s bid was Rs 135 per month per passenger. Despite the 10 pc concession it got through ‘right of First Refusal’, it was nowhere near the amount bid by Adani.

Only three agencies bid for Thiruvananthapuram and Mangalore. Cochin International Airport also unsuccessfully tried to bid for Mangalore airport with a bid amount of Rs 45.

Adani Group’s other auction amounts were Mangalapuram Rs 115, Jaipur Rs 174, Lucknow 171 and Ahmedabad Rs 177.