The central government has set a monetisation target of Rs 275 billion (bn) for the civil aviation sector under the National Monetisation Pipeline 2.0 for the period FY26 to FY30. The renewed framework aims to accelerate private participation in operational airports and selected aviation public sector entities while retaining government ownership of core assets. The initiative is intended to support capital expenditure and fiscal consolidation.\n\nOfficials have identified 11 airports for leasing during the five year period, including Varanasi, Bhubaneswar, Amritsar, Indore, Raipur, Trichy, Calicut, Coimbatore, Ranchi, Jodhpur and Gaya. The proposal is under consideration by the Public Private Partnership Appraisal Committee and airports are to be offered under structured concession agreements rather than through outright sale. The leases are expected to attract private investment in modernisation and expansion.\n\nUnder the proposed model, airports will be leased through long term concession agreements typically spanning 20 to 50 years, with ownership remaining with the public authority and assets reverting at the end of the concession. The primary arrangement envisaged is the Operation, Maintenance and Development Agreement under which private concessionaires will operate, maintain and invest in airports while paying an upfront concession fee or sharing revenue. The framework also permits select strategic stake sales or equity divestments in aviation related public sector undertakings via IPO or FPO routes.\n\nOfficial estimates indicate that the monetisation value of Rs 275 bn comprises upfront concession payments, the present value of future revenue share payable to the government and committed private investment, and after adjustment for depreciation the aggregate monetisation value is estimated at Rs 225 bn. Most proceeds between FY26 and FY30 are expected to accrue to airport authorities and public sector undertakings, with some inflows projected beyond FY30 depending on concession terms. The revised target represents a substantial increase compared with the earlier NMP cycle when the civil aviation target stood at Rs 135 bn and signals a scale up of asset monetisation efforts to meet broader infrastructure objectives.