+
Bids For Privatisation Of 11 Airports By April
AVIATION & AIRPORTS

Bids For Privatisation Of 11 Airports By April

AAI is set to begin the third round of airport monetisation, inviting bids for 11 airports by April under a new bundling strategy. The government has formed five bundles pairing larger and smaller airports, including Amritsar with Kangra and Varanasi with Kushinagar and Gaya. Officials in the Ministry of Civil Aviation said that five airport operators have expressed preliminary interest.

The airports will be leased on long-term concession through the public-private partnership model for operation, management and development. The public private partnership appraisal committee is expected to clear the proposal within the next two months, after which requests for proposals will be issued. The government aims to raise Rs 60 billion (Rs 60 bn) in 2026-27 from the leases to fund further airport expansion and new assets by AAI.

Named potential bidders include the Adani Group, GMR Airports, Vinci Airports and investment firm NIIF, while several global private equity funds have shown interest. Airports will be awarded to bidders offering the highest revenue share per passenger to AAI, a mechanism intended to improve transparency. The appraisal committee will review key structural choices such as revenue sharing versus per passenger fees, user development fee frameworks and operator caps.

The bundling approach is intended to enable cross-subsidisation, pairing profitable hubs with smaller non-metro airports to ensure sustained investment. Airport monetisation began in 2003 with PPPs for Delhi and Mumbai and subsequent rounds included leases for Ahmedabad, Lucknow and other regional airports. Separately, the government will sell up to five per cent stake in Bharat Heavy Electricals (BHEL) via an offer for sale to raise Rs 44.22 billion (Rs 44.22 bn), offering three per cent with an additional two per cent as a greenshoe and setting a floor price of Rs 254, a discount of nearly eight per cent to the Bombay Stock Exchange (BSE) close, bringing disinvestment receipts so far to Rs 87.68 billion (Rs 87.68 bn).

AAI is set to begin the third round of airport monetisation, inviting bids for 11 airports by April under a new bundling strategy. The government has formed five bundles pairing larger and smaller airports, including Amritsar with Kangra and Varanasi with Kushinagar and Gaya. Officials in the Ministry of Civil Aviation said that five airport operators have expressed preliminary interest. The airports will be leased on long-term concession through the public-private partnership model for operation, management and development. The public private partnership appraisal committee is expected to clear the proposal within the next two months, after which requests for proposals will be issued. The government aims to raise Rs 60 billion (Rs 60 bn) in 2026-27 from the leases to fund further airport expansion and new assets by AAI. Named potential bidders include the Adani Group, GMR Airports, Vinci Airports and investment firm NIIF, while several global private equity funds have shown interest. Airports will be awarded to bidders offering the highest revenue share per passenger to AAI, a mechanism intended to improve transparency. The appraisal committee will review key structural choices such as revenue sharing versus per passenger fees, user development fee frameworks and operator caps. The bundling approach is intended to enable cross-subsidisation, pairing profitable hubs with smaller non-metro airports to ensure sustained investment. Airport monetisation began in 2003 with PPPs for Delhi and Mumbai and subsequent rounds included leases for Ahmedabad, Lucknow and other regional airports. Separately, the government will sell up to five per cent stake in Bharat Heavy Electricals (BHEL) via an offer for sale to raise Rs 44.22 billion (Rs 44.22 bn), offering three per cent with an additional two per cent as a greenshoe and setting a floor price of Rs 254, a discount of nearly eight per cent to the Bombay Stock Exchange (BSE) close, bringing disinvestment receipts so far to Rs 87.68 billion (Rs 87.68 bn).

Related Stories

Gold Stories

Next Story
Infrastructure Urban

BMW Ventures Secures Rs 249.83 Million (mn) Steel Orders

BMW Ventures Limited said it has secured two purchase orders totalling Rs 249.83 million (mn) from Lata Projects Limited for the supply of TMT steel FE-550D grade for three units of 800 megawatt (MW) capacity at the USCTPP Adani project. The orders were disclosed to the stock exchanges under Regulation 30 of the SEBI Listing Regulations and carry a contract value inclusive of all taxes.\n\nThe company stated that the orders will be executed within eight weeks from the date of the purchase orders and that the contract provides for 100 per cent advance payment with specified guarantees. The supp..

Next Story
Real Estate

Housing Sales Dip in Top Eight Cities in Q2, Pune and Bengaluru Hit Hard

Housing sales across the top eight cities fell six point one per cent year-on-year to 91,729 units in the April-June quarter from 97,674 a year earlier, PropTiger’s Real Insight Residential report showed. The moderation reflected seasonal pre-monsoon effects and heightened buyer caution amid the US-Iran conflict. New launches rose six per cent to 89,161 units. The impact was concentrated in technology-driven markets, with Pune and Bengaluru among the hardest hit. Pune recorded the steepest annual decline at 20.8 per cent, with sales falling to 12,642 units, while Ahmedabad declined 20.2 per ..

Next Story
Infrastructure Urban

India And ADB Sign US$230 Million Loan To Modernise Chennai Water

The Government of India and the Asian Development Bank (ADB) signed a US$230 million loan to modernise and expand water supply and sanitation infrastructure in Chennai. Saurabh Singh, Deputy Secretary, Department of Economic Affairs (DEA), signed on behalf of the Government of India and Mio Oka, Country Director of ADB’s India Resident Mission, signed for the lender. The engagement was guided by Baldeo Purushartha, Joint Secretary (ADB and Japan), DEA. The Chennai Climate-Resilient Water Security and Sewerage Project aims to improve access to safe and reliable water and sanitation citywide w..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

SPECIAL OFFER
QR Code