+
Govt to complete privatisation of 13 airports by end of FY22
AVIATION & AIRPORTS

Govt to complete privatisation of 13 airports by end of FY22

The government plans to complete the privatisation of 13 airports run by the Airport Authority of India (AAI) by the end of FY22.

Chairman of AAI, Sanjeev Kumar, told the media that they had sent the list of 13 airports to the Ministry of Aviation that is to bid out on the public-private partnership (PPP) model. The target is to complete the privatisation by the end of FY22.

It will use the per-passenger revenue model for the bidding. This model was previously used, and the Jewar Airport was bid out on the same model.

AAI decided to merge seven small airports with six big airports, including Varanasi with Kushinagar and Gaya, Amritsar with Kangra, Bhubaneswar with Tirupati, Raipur with Aurangabad, Indore with Jabalpur and Trichy with Hubli.

Under the government's National Monetisation Plan (NMP), it has planned to award 25 airports within four years, along with the 13 airports. It follows the six awarded airports to Adani in 2019 during the beginning of the second phase of privatisation after Delhi, Mumbai, Bengaluru and Hyderabad were handed over in 2005-06.

The government wants to liberalise the sector with the privatisation of these airports. AAI mandate will be expanded for developing new airports where the private sector may not venture through revenue earned from the airport privatisation.

AAI's earrings were affected due to the Covid-19 pandemic. It witnessed a record loss of Rs 1,962 crore in FY21 and borrowed Rs 1,500 crore from the State Bank of India (SBI). With the pandemic situation normalising and the passenger traffic increasing, AAI will not require to borrow for working capital needs this year. Last year the capital expenditure was Rs 2,100 crore, and it borrowed Rs 1,000 crore.

Image Source

Also read: AAI approves privatisation of 13 more airports

The government plans to complete the privatisation of 13 airports run by the Airport Authority of India (AAI) by the end of FY22. Chairman of AAI, Sanjeev Kumar, told the media that they had sent the list of 13 airports to the Ministry of Aviation that is to bid out on the public-private partnership (PPP) model. The target is to complete the privatisation by the end of FY22. It will use the per-passenger revenue model for the bidding. This model was previously used, and the Jewar Airport was bid out on the same model. AAI decided to merge seven small airports with six big airports, including Varanasi with Kushinagar and Gaya, Amritsar with Kangra, Bhubaneswar with Tirupati, Raipur with Aurangabad, Indore with Jabalpur and Trichy with Hubli. Under the government's National Monetisation Plan (NMP), it has planned to award 25 airports within four years, along with the 13 airports. It follows the six awarded airports to Adani in 2019 during the beginning of the second phase of privatisation after Delhi, Mumbai, Bengaluru and Hyderabad were handed over in 2005-06. The government wants to liberalise the sector with the privatisation of these airports. AAI mandate will be expanded for developing new airports where the private sector may not venture through revenue earned from the airport privatisation. AAI's earrings were affected due to the Covid-19 pandemic. It witnessed a record loss of Rs 1,962 crore in FY21 and borrowed Rs 1,500 crore from the State Bank of India (SBI). With the pandemic situation normalising and the passenger traffic increasing, AAI will not require to borrow for working capital needs this year. Last year the capital expenditure was Rs 2,100 crore, and it borrowed Rs 1,000 crore. Image Source Also read: AAI approves privatisation of 13 more airports

Related Stories

Gold Stories

Next Story
Products

Interio by Godrej launches modular workplace solutions

Interio by Godrej has launched Workscapes, a modular workplace solutions category designed to help organisations configure and adapt workspaces to changing requirements. The portfolio combines mobile and compatible furniture and support elements that can be rearranged across different work modes without changes to fixed layouts.Workscapes includes Collaboration Tables, Privacy Solutions, Mobile Markerboards and Space Dividers, Power Solutions, Storage and Support Elements, Meeting and Presentation Tools, and Seating Elements. The range is designed for focused work, collaboration, informal disc..

Next Story
Infrastructure Urban

CAFE-III Gives Auto Industry Investment Clarity

The government’s new Corporate Average Fuel Economy (CAFE-III) norms have provided the automobile industry with a clearer framework for technology investments, according to industry representatives. The framework seeks to balance environmental objectives with flexibility for manufacturers while encouraging the adoption of flex-fuel vehicles and biofuels. Society of Indian Automobile Manufacturers (SIAM) President Shenu Agarwal said the five-year framework would give automakers greater predictability to plan investments and accelerate innovation. He said the regulation established annual targ..

Next Story
Infrastructure Energy

Mines Ministry to Auction Two Offshore Mineral Blocks in Andaman Sea

The Ministry of Mines will launch an auction of two offshore mineral blocks in the Andaman Sea on Thursday, seeking to unlock India’s offshore mineral potential and strengthen long-term mineral resource security. The blocks will be offered under a composite licence, which permits exploration and development activities in accordance with the applicable regulatory framework. The ministry said the auction was intended to encourage systematic exploration, attract investment and promote the use of advanced technologies for offshore mineral exploration and development. The initiative is also aimed..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

SPECIAL OFFER
QR Code