Earlier this year, the Adani group had won the bids to operate six airports for a period of 50 years
The Union Cabinet on Wednesday gave its approval to the proposals for leasing out three major airports — Ahmedabad, Lucknow and Mangaluru — of Airports Authority of India (AAI) through public-private partnership (PPP).
Earlier this year, the Adani group had won the bids to operate six airports for a period of 50 years, including the three for which Cabinet nod came on Wednesday.
The other three airports are Jaipur, Guwahati and Thiruvananthapuram. The bidding for all the six domestic airports was based on per passenger basis instead of revenue sharing during the privatisation of Mumbai, Delhi, Bengaluru and Hyderabad airports. Also, the concession period offered in the latest round of bids is 50 years, as against 30 years earlier. The six airports collectively carried over 20.6 million domestic and 5.1 million international passengers during the April-December period.
GREEN SIGNAL
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- Earlier this year, the Adani group had won the bids to operate six airports for a period of 50 years
- The bidding for all the six domestic airports was based on per passenger basis
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Adani group, which boasts of business interests ranging from ports, real estate, power, and defence, has shown a keen interest in the airport vertical, especially at a time when the industry's financials have taken a beating amid stiff competition and volatile fuel prices.
Earlier, Adani Enterprises is believed to have shown interest in buying a 23.5% stake of Bidvest and ACSA- two private equity partners of GVK Airport Ltd – in Mumbai airport. GVK, which has the first right of refusal to acquire stakes of its two private equity partners and even approached the court to bar Bidvest from selling its stake to any third party, received a setback on Monday when Delhi High Court dismissed its plea. The court order was on the grounds that GVK Power had failed to show any "readiness and willingness" to buy Bidvest's stake despite it having the first right to buy the shares.
Aviation consultant Centre for Asia Pacific Aviation has estimated that up to $45 billion of investment will be required for airport expansion and construction in India by 2030 in order to keep pace with the projected growth in airport traffic.
Minister of state for civil aviation Jayant Sinha last year said that the airport infrastructure sector is set to get around Rs 1 lakh crore in the next five years. Of the total, around Rs 95,178 crore of investment is expected to come from private investments in joint venture airports, new terminals and development of greenfield airports.
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