Profitable, loss making airports could also be clubbed collectively and supplied

The authorities is anticipated to supply 6-10 airports within the subsequent spherical of privatisation, for which the Airports Authority of India (AAI) is 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. In an interplay with reporters Thursday, Civil Aviation Secretary Pradeep Singh Kharola mentioned {that a} main benefit of public-private partnership will probably be that the sources of AAI, that are tied up with these airports, “will be liberated”.
“Based on the experience gained, it is being contemplated by the AAI if we can club a profitable and a non-profitable airport and then go for the PPP process. Because for a profitable airport, a party would come and bid but for a non-profitable airport, a party would not come. So, a new approach is being examined by the AAI, where a profitable and a non-profitable airport will be clubbed and will be taken up as a package,” Kharola mentioned.

Last 12 months, the federal government privatised six airports — Ahmedabad, Lucknow, Mangalore, Jaipur, Guwahati and Thiruvananthapuram — and the AAI Board has authorized leasing up of at the very least six extra — Bhubaneswar, Varanasi, Amritsar, Raipur, Indore and Trichy — for endeavor operations, administration and growth by way of PPP. Finance Minister Nirmala Sitharaman, whereas presenting the Budget earlier this week, mentioned as part of its asset monetisation programme, the federal government privatise AAI-owned airports in tier-2 and tier-3 cities.