Govt eyes next phase of airport privatisation in 2025-26 budget

11 Nov 2024 CW Team

The central government is set to initiate the next phase of airport privatisation under the public-private partnership (PPP) model, anticipated to kick off following the 2025-26 Budget, according to government sources. The Ministry of Civil Aviation is finalising a proposal, which will soon be submitted to the Ministry of Finance before heading for Cabinet approval. Pre-bidding consultations are expected after the Budget, with the process potentially beginning by the end of 2024-25.

The government aims to accelerate this phase of privatisation, aiming for an official Budget announcement by the Finance Minister. Under the National Monetisation Pipeline (NMP), 25 airports under the Airports Authority of India (AAI) have been marked for leasing between 2022-2025. These include airports in cities such as Bhubaneswar, Varanasi, Amritsar, and Coimbatore, among others, intended to benefit from private-sector efficiency and investment.

The first wave of the new privatisation phase will focus on 13 airports, with seven major airports—Vijayawada, Bhubaneswar, Tiruchirappalli, Indore, Raipur, Amritsar, and Varanasi—set to be paired with smaller facilities like Kushinagar, Gaya, and Hubballi. This structure seeks to enhance management and development through private partnerships, aligning with statements from Union Minister of State for Civil Aviation, Murlidhar Mohol, who emphasised the improvements for both states and passengers.

This renewed focus follows a year-long slowdown due to state and general elections, yet major players remain keen. Adani Airport Holdings (AAHL), which operates key airports in Mumbai, Trivandrum, and Ahmedabad, is eager to expand its portfolio, while GMR Airports Infrastructure seeks both domestic and international opportunities, with interest in regions such as the Middle East and Southeast Asia. (Moneycontrol)

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