Government approves to lease out Jaipur, Guwahati, Thiruvananthapuram Airports in PPP Model

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NET News Desk

The Union Cabinet on Wednesday approved to lease out Jaipur, Guwahati and Thiruvananthapuram airports of the Airport Authorities of India (AAI) to private players under the Public Private Partnership (PPP) model.

“The Union Cabinet has approved a proposal for leasing out Jaipur, Guwahati and Thiruvananthapuram airports, of Airports Authority of India (AAI), through Public-Private Partnership,” Union Minister Prakash Javadekar said during the press briefing.

The three airports will be leased for operation, management, and development in public-private partnership (PPP) model to Adani Enterprises, the successful bidder in a global competitive bidding last year, for 50 years, according to a government statement.

Adani Enterprises had won the rights to run six airports including these three, the other three being Lucknow, Ahmedabad, Mangalore through the PPP model after a competitive bidding process in February 2019. In July 2019, the Union Cabinet had approved the proposal for leasing out Ahmedabad, Mangalore and Lucknow airports to Adani Enterprises.

As per reports, these airports are leased out for operation, management and development to Adani Enterprises Ltd. The Adani group won the rights in global competitive bidding, conducted by the AAI, for a period of fifty years.

Prakash Javadekar, Union Minister for information and broadcasting, announced the cabinet decision saying, “These projects will bring efficiency in service delivery, expertise, enterprise and professionalism, apart from harnessing the needed investments in the public sector. The AAI is not giving these airports permanently to the private operator. After running them for 50 years, the private operator would be handing over the airports back to the AAI,” said the minister.”

The AAI owns and manages more than 100 airports across the country, and Civil Aviation Minister Hardeep Puri, in a webinar on Tuesday, made it clear that his ministry has got many more airports lined up, and 100 new airports will be built between now and 2030.

As reported in News 18, Adani Enterprises had won the rights to run six airports including these three, the other three being Lucknow, Ahmedabad, Mangalore through the PPP model after a competitive bidding process in February 2019. In July 2019, the Union Cabinet had approved the proposal for leasing out Ahmedabad, Mangalore and Lucknow airports to Adani Enterprises.

Currently, all the aforementioned six airports are owned and managed by the government-run AAI. The minister said the AAI will receive Rs 1,070 crore as an upfront amount from the private operator for leasing the airports at Jaipur, Guwahati, Thiruvananthapuram and this fund will be used to develop airports in smaller cities.

Union Civil Aviation Minister Hardeep Singh Puri said that he will present a proposal before the Union Cabinet about the privatisation of airports across the country.

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