Govt to shed AAI stake in Delhi, Mumbai airports

HAVING EMBARKED on an formidable asset monetisation drive to lift extra sources, and hoping to lift Rs 20,000 crore via sale of belongings beneath the Ministry of Civil Aviation in 2021-22, the Government is trying to divest the remaining fairness stake held by Airports Authority of India (AAI) within the Delhi, Mumbai, Bengaluru and Hyderabad airports.
The Indian Express has learnt that within the assembly of Core Group of Secretaries for Asset Monetisation (CGAM) held on February 8, an replace was supplied that the Ministry of Civil Aviation has recognized 13 AAI airports to be monetised via the OMDA (Operation, Management, Development Agreement) mannequin and {that a} transaction advisor has been appointed.
While it was proposed to discover the clubbing of worthwhile and non-profitable airports “to make the package attractive,” sources confirmed that the Ministry would get hold of requisite approvals for the divestment of fairness stake of AAI within the joint ventures for the Delhi, Mumbai, Bengaluru and Hyderabad airports.
Once approval comes via, the Government is more likely to promote the remaining shareholding of AAI in these 4 key airports.
Currently, AAI holds 26 per cent stake every within the Delhi and Mumbai airports, 13 per cent in Hyderabad and 13 per cent within the Bengaluru facility. The GMR Group owns 54 per cent stake within the Delhi airport, whereas Adani Group maintain 74 per cent within the Mumbai airport. In addition to those 4 airports, AAI holds 49 per cent stake in Nagpur, 7.47 per cent in Kannur, and 51 per cent in Chandigarh.

ExplainedStriking a steadinessThe stake sale will elevate the Government’s asset monetisation programme to drive improvement tasks and enhance financial exercise. But AAI’s fairness presence can also be vital as a result of it ensures essential oversight, particularly by way of retaining consumer prices inside cheap limits.

Last 12 months, the Government had privatised six airports — Ahmedabad, Lucknow, Mangalore, Jaipur, Guwahati and Thiuvananthapuram — and the AAI Board authorised leasing of a minimum of six extra for enterprise operations, administration and improvement via PPP.
Finance Minister Nirmala Sitharaman, whereas presenting the Budget for 2021-22 in February, had stated that as a part of its asset monetisation programme, the Government plans to privatise AAI-owned airports in tier-2 and tier-3 cities.

Shortly after the Budget, Civil Aviation Secretary Pradeep Singh Kharola had stated that AAI was exploring a brand new mannequin whereby a worthwhile airport and a non-profitable airport will probably be clubbed collectively earlier than being delivered to the desk.
The Government has set an formidable goal of round Rs 2.5 lakh crore via asset monetisation in 2021-22, comprising numerous asset lessons throughout eight ministries.

Sources confirmed that the Ministry of Railways has a goal of over Rs 90,000 crore for the 12 months FY’22, Department of Telecom Rs 40,000 crore, Ministry of Road Transport & Highways Rs 30,000 crore and Ministry of Power Rs 27,000 crore. The Ministries of Civil Aviation, and Youth Affairs and Sports, have targets of Rs 20,000 crore every for FY’22.