Adani Group Signs Concession Agreements with AAI for Developing 3 Airports

Jan. 20—NEW DELHI — The Adani Group on Tuesday signed a concession agreement with the state-owned Airports Authority of India (AAI) for the operation, development and management of airports at Jaipur, Guwahati and Thiruvananthapuram, about two years after winning bids for these airports.

According to terms and conditions specified in the concession agreement, the Adani Group will have to take up these airports within the next six months. The concessionaire will manage, develop and operate the airports for a period of 50 years.

The Gautam Adani-led Adani Enterprises had in February 2019 emerged as the highest bidders for AAI-operated airports in Ahmedabad, Jaipur, Mangaluru, Thiruvananthapuram, and Lucknow, which were put up for privatization under the public private partnership (PPP) model.

However, the Communist Party of India (Marxist)-led Left Democratic Front (LDF), which governs the state, objected to handover of the AAI-operated airport to the Adani Group. The state government had last October moved the Supreme Court against the handover of the airport. While the apex court is yet to hear the matter, the Kerala High Court had in October dismissed the state government's pleas against leasing out Trivandrum Airport to the Adani Group.

As things stand, Adani Group has already taken over three airports, which includes Lucknow, Mangalore and Ahmedabad.

The Ahmedabad-based group, which had till then no prior experience of running airports, had outbid established players like GMR Group for some of the airports out up for privatization by the government.

However, due to the covid-19 pandemic, which resulted in travel restrictions and border shutdowns, the company had invoked the force majeure clause in the public-private partnership (PPP) contract to delay taking possession of airports at Ahmedabad, Lucknow, and Mangaluru.

When contacted, a spokesperson of Adani Group, who handles its airport division, didn't offer further comments.

The Adani Group, through its airport business subsidiary, is also in the process to complete the acquisition of a 74% stake in the Mumbai airport, which is expected to be concluded in the coming days.

The seven airports, under the Adani Group, including the Mumbai airport, handles about a fourth of total domestic passengers, according to AAI data.

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