Privatisation of six airports gathers pace

Adani Enterprises will manage airports for 50 years

Published - June 10, 2019 01:21 am IST - THIRUVANANTHAPURAM

The Union government has initiated steps to hand over the six non-metro airports in the country to the private player that has emerged as the highest bidder in the auction for the airports currently managed by the Airports Authority of India (AAI).

The handing over the Letter of Award (LOA) to Adani Enterprises Ltd (AEL) of the global integrated infrastructure player Adani Group, the highest bidder, was put on hold in view of the model code of conduct for the elections to Lok Sabha and cases in the Kerala High Court.

AEL, the selected concessionaire will manage, operate as well as develop the aviation-related infrastructure facilities of Guahati, Lucknow, Jaipur, Ahmedabad, Mangaluru and Thiruvananthapuram airports for 50 years.

With the new government assuming charge under Prime Minister Narendra Modi, an action plan has been worked out to lease out the six airports. The move is to complete the groundwork, secure Union Cabinet approval and lease out the airports after signing the MoU with the AEL before the validity of bids end in July, official sources said.

The Human Resources Directorate had been asked to segregate the employees into AGM and below and DGM and above and to identify Communication Navigation Surveillance and Air Traffic Management employees deployed at the airport in other sections and to take steps for repatriation.

Only AAI employees in the AGM grade and below can opt to work with AEL for a minimum of one year and maximum of three years once the six airports are leased out.

The Finance, Engineering, Technical, Fire, Land Management, Planning and Commercial Directorates of the AAI have been tasked with specific pre-handing over activities, including status of the capital works, preparation of department wise list of existing assets and land demarcation.

Airport-wise joint committees will be set up for the smooth handover and joint management. Independent engineers will be posted in the six airports and an SOP will be prepared for collection of monthly concession fee and determination of the balance payment from AEL.

AAI is expecting over ₹1,200 crore annually from the leasing out of six airports. Since the bidding parameter was per flying person, tripartiate agreement will be signed between AAI, AEL and the IATA. The AAI Chairman has convened a meeting of members and heads of departments on June 14 in New Delhi to review the action plan.

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