Adani Group to take over these airports; signs concession agreements

• Adani group will takeover Ahmedabad, Lucknow and Mangalore airports within the next 15 days

• Adani was awarded six airports in February under PPP model being the highest bidder in an auction

• The group has yet to take over the rest of the three airports Jaipur, Trivandrum, and Guwahati

New Delhi: Ministry of Civil Aviation (MoCA) has finally signed three memoranda of understandings (MoUs) with the three Adani companies towards a takeover of Ahmedabad, Lucknow & Mangalore airports by November 7. Adani Ahmedabad International Airport Limited, Adani Lucknow International Airport Limited and Adani Mangaluru International Airport Limited signed MoUs with MoCA on October 21, at Airports Authority of India (AAI)'s corporate headquarters. The concession agreements for Operations, Management and Development of Ahmedabad, Lucknow and Mangaluru Airports through Public-Private Partnership (PPP) mode were signed earlier on February 14 with Adani but citing the pandemic Adani was seeking more time in taking over these airports. Finally, AAI asked the Adani group to take over the airports by November 12.

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Earlier in July, Adani had cited the force majeure arising from COVID-19 pandemic to inform the AAI that it may have to delay taking over the three Lucknow, Mangalore, and Ahmedabad it had won in February 2019. There were a total of six airports Adani won being the highest bidder in February. The group has also not taken over the remaining three airports at Jaipur, Trivandrum, and Guwahati since they were stuck in litigation. Kerala High Court on Wednesday only has upheld the government's decision to give Trivandrum Airport to Adani through the auction.

The MoUs are in connection with the provision of airport routine services like customs, immigration, plant and animal quarantine, health, MET and Security (collectively called as Reserved Services). Simultaneously, AAI also signed three separate CNS-ATM agreements with these companies for the provision of CNS-ATM services at Ahmedabad, Lucknow and Mangluru airports. CNS-ATM services mean Communication, Navigation and Surveillance and Air Traffic Management Services.

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Both AAI and concessionaires of Ahmedabad, Lucknow and Mangaluru Airports will be completing conditions precedents as prescribed in the concession agreements. The Adani companies will be taking over the Operations, Management and Development of Mangalore airport on October 31, Lucknow airport on November 2 and Ahmedabad airport on November 7. With acquiring 74% stake in the Mumbai airport (MIAL) in September, Adani group now has eight airports under its belt. The remaining 26% stake of Mumbai airport, India's second busiest airport, are held by AAI.

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