Government starts consultations to lease 10 more AAI airports under PPP model.

The Indian government has commenced consultations for leasing more than 10 airports under the public-private partnership (PPP) model, sources told BusinessLine. The process, aimed at enhancing airport management and infrastructure, is currently in the inter-ministerial consultation stage, with a Cabinet note circulated to seek input and address concerns from various ministries.

According to sources, responses to the Cabinet note have been received, and discussions are underway to finalize the details. The Cabinet will determine which airports will be included in the leasing process and whether any modifications will be made to the concession agreement for the upcoming round.

Speculation suggests that key regional hubs such as Amritsar, Varanasi, Bhubaneswar, Indore, Raipur, and Tiruchi could be among the airports considered for leasing. Additionally, airports in Kushinagar, Gaya, Hubli, Aurangabad, and Tirupati may also be included in the plan.

The government is also exploring the option of bundling profitable and non-profitable airports together for bidding, a move expected to attract a broader range of bidders and ensure a balanced and competitive process. This initiative is part of the National Monetisation Pipeline (NMP), which seeks private sector participation to improve passenger experience and drive economic growth.

Under the NMP, 25 Airports Authority of India (AAI) airports were identified for leasing between 2022 and 2025. These include Bhubaneswar, Varanasi, Amritsar, Tiruchi, Indore, Raipur, Kozhikode, Coimbatore, Nagpur, Patna, Madurai, Surat, Ranchi, Jodhpur, Chennai, Vijayawada, Vadodara, Bhopal, Tirupati, Hubli, Imphal, Agartala, Udaipur, Dehradun, and Rajahmundry.

Since 2014, AAI has leased six airports for improved operations, management, and development under the PPP model. These leases, spanning 50 years, ensure that AAI retains ownership of airport land, which will revert to the authority upon expiry of the lease period.

In the previous round of airport leasing in 2019, Adani Group secured the rights to operate six airports: Lucknow, Ahmedabad, Mangaluru, Guwahati, Jaipur, and Thiruvananthapuram. Highlighting the rationale behind the initiative, Minister of State for Civil Aviation Murlidhar Mohol previously stated in Parliament that AAI leases airports to leverage private sector efficiency and investment, enhancing economic activities and benefiting both states and passengers.

Revenue generated from leased airports is reinvested into the development of airport infrastructure across the country, ensuring a continuous cycle of improvement and modernization in India's aviation sector.

HBL