- The Public Private Partnership Appraisal Committee (PPPAC) has granted in-principle approval for the privatisation of 11 Airports Authority of India (AAI) airports, which will be offered in five public-private partnership bundles.
- The government plans to pair one larger airport with a smaller airport in each bundle.
- Amritsar, Varanasi, Bhubaneswar, Raipur and Tiruchirappalli will serve as the anchor airports, while Kangra, Gaya, Kushinagar, Hubballi, Aurangabad and Tirupati will be bundled with them.
- The approval moves the government towards the next phase of airport privatisation, with bidders set to compete for 50-year concessions.
- The bidding will be based on a per-passenger fee on domestic traffic, while the government will also place a cap on the number of bundles that a single bidder can win.
- NDTV Profit accessed the PPPAC document outlining the proposal.
- The Finance Ministry flagged the "oligopolistic nature" of the aviation sector in its observations on the proposal, according to the PPPAC document accessed by NDTV Profit.
The Public Private Partnership Appraisal Committee (PPPAC) has granted in-principle approval for the privatisation of 11 Airports Authority of India airports, marking a significant step in the government's airport privatisation initiative.12
The airports will be offered in five public-private partnership bundles, pairing larger airports with smaller ones.
The five anchor airports include Amritsar, Varanasi, Bhubaneswar, Raipur, and Tiruchirappalli, which will be paired with Kangra, Gaya, Kushinagar, Hubballi, Aurangabad, and Tirupati.456
This strategic pairing aims to enhance operational efficiency and attract investment in less trafficked regions.
The bidding process will be competitive, with a concession period of 50 years. Bidders will quote a per-passenger fee based on domestic traffic, and the government will impose a cap on the number of bundles a single bidder can win to prevent monopolistic practices.91011
The Finance Ministry has raised concerns about the “oligopolistic nature” of the aviation sector, emphasizing the need for a balanced approach in the bidding process.13
This initiative is expected to stimulate growth in the aviation sector and improve connectivity across India, particularly in underserved areas.
“The five anchor airports—Amritsar, Varanasi, Bhubaneswar, Raipur, and Tiruchirappalli—will be paired with six smaller ones, with bidders competing for 50-year concessions. The Finance Ministry flagged the sector's 'oligopolistic nature' in its observations on the proposal.”
