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Adani Group gets Cabinet nod to manage Lucknow, Ahmedabad and Mangalore airports

Adani Group gets Cabinet nod to manage Lucknow, Ahmedabad and Mangalore airports

Adani Group gets Cabinet nod to manage Lucknow, Ahmedabad and Mangalore airports
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By Anu Sharma  Nov 10, 2019 1:53:46 PM IST (Updated)

The Union Cabinet on Wednesday gave its approval to Adani Group to operate, manage and develop the airports of Lucknow, Ahmedabad and Mangaluru in a public-private partnership model.

The Union Cabinet on Wednesday gave its approval to Adani Group to operate, manage and develop the airports of Lucknow, Ahmedabad and Mangaluru in a public-private partnership model.

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On Tuesday, CNBC-TV18 exclusively reported that the civil aviation ministry moved a revised Cabinet note on privatisation of six state-run airports in Jaipur, Lucknow, Thiruvananthapuram, Mangaluru, Guwahati and Ahmedabad, and that the Cabinet was likely to take up the matter today.
The other three airports — in Jaipur, Guwahati and Thiruvananthapuram — will be taken up later by the Cabinet, the government said today.
Under a two-stage tender process, which concluded late February, 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 (AAI) on a monthly basis.
The Gautam Adani-led group had quoted per passenger fee of Rs 174 for the Jaipur airport, Rs 177 for Ahmedabad, Rs 115 for Mangaluru, Rs 171 for Lucknow, Rs 160 for Guwahati, and Rs 168 for the Thiruvananthapuram airport.
"Due to the code of conduct during elections, the earlier Cabinet note was sent back. Then, the matter was taken up by an inter-ministerial group and a few minor changes were sought. Now a fresh Cabinet note has been sent. Expectation is that it may be taken up on Wednesday," people aware of the development told CNBC-TV18 on Tuesday.
In November, the Union Cabinet decided to privatise six airports to increase their efficiency and quality. Soon after, the AAI invited bids for these airports with a lease period of 50 years and in order to invite greater participation, prior airport experience was not among the mandatory bidding criteria.
In the technical round, AAI received 32 bids from 10 companies for privatisation of six airports with Jaipur and Ahmedabad getting the maximum interest. Of the 10 companies, Adani Enterprise and GMR Group submitted bids for all the six airports.
Other than these two, AMP Capital Investors (UK) Ltd, Italy's Autostrade, Cochin International Airport Ltd, I-Investments, KSIDC (Kerala State Industrial Development Corporation), NIIF (National Investment and Infrastructure Fund), PNC Infrastructure and Sanna Enterprises also showed interest.
As of now, Delhi, Mumbai, Hyderabad, Bengaluru and Cochin are the major private-run airports in the country.
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