Lok Sabha Question No. 4350 (UNSTARRED), answered on 2020-03-19
Subject: Privatisation of Airports
Ministry: CIVIL AVIATION
Asked by: N.K. Premachandran

## GOVERNMENT OF INDIA MINISTRY OF CIVIL AVIATION LOK SABHA UNSTARRED QUESTION NO. 4350 (To be answered on the March 2020)

## PRIVATISATION OF AIRPORTS

## 4350. SHRI NK PREMACHANDRAN

## Will the Minister of CIVIL AVIATION

be pleased to state:-

- (a) whether the Union Government proposes to revise its decision to privatise airports; if the details thereof and if not, the reasons therefor;
- (c) whether the Union Government proposes to priority to State Government for the management 0f Airports, if S0, the details thereof and if not; the reasons therefor; give
- (b) whether the\_Union Government proposes to review the decision of privatisation Of Thiruvananthapuram International Airport in the light of decision of Supreme Court; if s0, the details thereof;
- (d) whether the Union Government considers the fact that the land for airports were given by the State Governments, if so, the decision regarding the investment made by the State Government; and
- () whether the Union Government proposes to provide all rights including the right t0 fix the charges for the services in the airport and if S0, the details thereof?

## ANSWER

Minister of State (IC) in the Ministry of CIVIL AVIATION

(Shri Hardeep Singh Puri)

(: Government %f India has accorded 'in-principle' approval for leasing out Mangaluru; Jaipur; Guwahati and Thiruvananthapuram for operation, management and development through PPP mode AAI floated a Global Tender for inviting bids and identified the highest bidder: The Union Cabinet on 03.07.2019 accorded approval for leasing of three airports viz. Ahmedabad, Lucknow and Maugaluru airports; to the highest bidde i.e Ms Adani Enterprises Limited (AEL) who quoted highest per passenger fee for these airports under PPP for & lease period Of 50 years as per the terms and conditions %f the bid documents; In pursuance 0f this, AAK has issued Letter Ahmedabad 9

- and Mangaluru airports. The Concession Agreement between AAI and Mls AEL for Operation; Management and Development of these three airports has been signed on 14.02.2020. Award of the remaining 3 airports Le, Jaipur Guwahati and Thiruvananthapuram is held up due to pending litigations other issues.
- (b) & (c): Government of Kerala had requested the Government of India to allow them to form a Special Purpose Vehicle (SPV) t0 take over and run the Thiruvananthapuram Airport Government of india considered the request of Government of Kerala and allowed them to participate in the bidding process with the provision of Right of First Refusal (RoFR) with price range Kerala State Industrial Development Corporation (KSIDC) had participated in the bidding process. However; the bid quoted by KSIDC was found to be belw the 10 % price range parameter quoted by the highest bidder: KSIDC challenged the bidding process before the Hon'bie High Court of Kerala  The Hon'ble High Court %f Kerala in its order dated 18.12.2019 disposed of the case in favour of AAI An SLP was filed before the Hon'ble Supreme Court Supreme Court in its order dated 28.02.2020 has disposed of the case and has judice.
- (d): Airport land at six airports under PPP belongs to AAI and therefore airport land has been leased out in accordance with the provisions contained
- (e): Under the PPP model adopted by AAI at its airports; the exclusive right and authority is granted to the PPP partner the concession period to undertake some Of the functions of the AAT the functions of operation, maintenance; development, design; construction;\_gpgradation; moderuization; finance and management of the Airport. The charges in respect of derenautical services provided at major airports including PPP airports are determined by an independent Regulatory Authority namely Airports Economic Regulatory Authority (AERA) during being