Dynamite News Cabinet approves proposal for leasing out Jaipur, Guwahati and Thiruvananthapuram airports through PPP
The Union Cabinet has approved the proposal for leasing out Jaipur, Guwahati and Thiruvananthapuram airports of Airports Authority of India (AAI) through Public Private Partnership (PPP).
New Delhi [India]: The Union Cabinet has approved the proposal for leasing out Jaipur, Guwahati and Thiruvananthapuram airports of Airports Authority of India (AAI) through Public Private Partnership (PPP).
An official release said that the cabinet accorded its approval for leasing the three airports for operation, management and development to Adani Enterprises Ltd, who was declared as the successful bidder in global competitive bidding conducted by the Airports Authority of India. The lease is for a period of fifty years.
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The release said that the projects will bring efficiency in service delivery, expertise, enterprise and professionalism apart from harnessing the needed investments in the public sector. It said that the government had leased out the Airports Authority of India's airports at Delhi and Mumbai on Public Private Partnership for Operation, Management and Development about a decade ago. The release said that these PPP experiments have helped create world-class airports and helped in the delivery of efficient and quality services to the airport passengers. The move has also helped AAI in enhancing its revenues and focusing on developing airports and air navigation infrastructure in the rest of the country, it said.
The release said that revenue received by AAI from PPP partners enabled AAI to create infrastructure facilities in tier-two and tier-three cities and also to upgrade their airports to international standards. It said PPP airports in India are consistently ranked among the top 5 in their respective categories by the Airports Council International (ACI) in terms of Airport Service Quality (ASQ).
"Therefore, Government decided to lease out more airports of AAI for Operation, Management and Development under PPP through Public Private Partnership Appraisal Committee (PPPAC)," the release said.
The government has also constituted an Empowered Group of Secretaries (EGoS) to decide on any issue falling beyond the scope of PPPAC.
"PPPAC approved the transaction documents. The entire bidding process was carried out under the supervision and directions of EGoS which comprised of representatives of NITI Aayog, Department of Expenditure and Department of Economic Affairs (DEA) of Ministry of Finance (MoF)," the release said.
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Airports Authority of India released Request for Proposal in December 2018 through global competitive bidding wherein per passenger fee is the bidding parameter. The technical February last year and the financial bids of the qualified bidders were opened in February last year. "Adani Enterprises Ltd. has won all the bids by quoting highest per passenger fee for all the three airports - Jaipur, Guwahati and Thiruvanathapuram," the release said. (ANI)