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Adani Group signs concession agreement with AAI for 3 airports

Adani Group signs concession agreement with AAI for 3 airports

Adani Group signs concession agreement with AAI for 3 airports
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By Anu Sharma  Feb 14, 2020 3:33:49 PM IST (Published)

Adani Group has signed a concession agreement with Airports Authority of India for operations, management and development of the three airports of Ahmedabad, Lucknow and Mangaluru.

Adani Group has signed a concession agreement with Airports Authority of India (AAI) for operations, management and development of the three airports of Ahmedabad, Lucknow and Mangaluru.

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CNBC-TV18 had exclusively told you earlier today that the Gautam Adani-led group was expected to sign the agreement today, one year after it emerged as the higher bidder for six airports, including these three.
"Over the past 30 years, @AdaniOnline has catered to critical demand gaps in India. Today as we sign the concession agreements for Mangaluru, Lucknow & A'bad with @AAI_Official, its the beginning of another historic journey catering to India's exponential airport infra demands," Gautam Adani wrote on Twitter.
Adani Group will now start the process of taking over the three airports and the transition is likely to be completed within the next 60 days, the sources added.
The Ahmedabad-based conglomerate surprised the industry with its aggressive bids. At Rs 115 per passenger for Mangaluru and Rs 171 for Lucknow, Adani Group’s bids were over 500 percent more than the lowest bids received from the GMR Group and PNC Infratech respectively.
Similarly, it placed a bid of Rs 177 for Ahmedabad airport, nearly 200 percent more than the lowest bid of Rs 60 of Autostrade Indian Infrastructure Development Pvt Ltd.
The Gautam Adani-led group's bids for the airports of Jaipur, Guwahati and Trivandrum are yet to be approved by the union cabinet as the three are stuck in legal hurdles.
In November 2018, the union cabinet had decided to privatise six airports to increase their efficiency and quality. The airports will be given on a lease period of 50 years. To invite greater participation, prior airport experience was not among the mandatory bidding criteria.
Over the last two years, the airport infrastructure space in India has seen the entry of two new players in the form of Zurich airport for Jewar and Adani Group.
Currently, Delhi, Mumbai, Hyderabad, Bengaluru are the major private-run airports in the country.
Under a two-stage tender process, which concluded February 2019, Adani Group emerged as the highest bidder for all six airports, quoting the highest per passenger fee to be paid to Airports Authority of India on a monthly basis.
"The current process of privatisation of six airports is expected to fetch a one-time capital expenditure return of Rs 2,000 crore while annual income would be around Rs 900 crore," a senior government official had told CNBC-TV18 after the first round of airport privatisation.
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