1 week ago
Why Infrastructure Players Are Bidding for 11 Airports
The government wants private companies to help run 11 airports.
It may group the airports into bundles for companies to bid on.
Companies would manage the airports, improve them and operate their passenger terminals.
They could also develop buildings and other facilities on nearby city-side land.
Firms would not need to have worked only in aviation.
Experience in other infrastructure areas, such as logistics, roads or shipping, could count.
The government hopes this wider competition and extra development land will make the airport projects more financially attractive.
It will ask companies for feedback before moving ahead.
The proposal would privatise 11 airports through bundled public-private partnership concessions.
Technical eligibility would include infrastructure experience beyond the aviation sector.
Concessionaires would operate, manage and develop airports, terminals and city-side infrastructure.
Land for city-side development is intended to improve the financial viability of the airport bundles.
The Ministry of Civil Aviation will seek market feedback before submitting a revised proposal for final recommendation.
- Who
- The Ministry of Civil Aviation, Airports Authority of India and private infrastructure companies.
- What
- A proposal to bundle and privatise the operation, management and development of 11 airports.
- Where
- The locations of the 11 airports are not specified.
- When
- The timing is not specified; the proposal is undergoing market sounding before final recommendation.
- Why
- To attract more infrastructure bidders, support city-side development and improve the financial viability of the airport bundles.
Key facts
- Number of airports
- 11 airports are covered by the privatisation proposal.
- Procurement model
- The airports are proposed to be bundled for public-private partnership concessions.
- Eligible experience
- Technical experience may come from infrastructure sub-sectors listed in the Harmonised Master List of Infrastructure, not only aviation.
- Concession responsibilities
- The concessionaire would operate, manage and develop the airports.
- Included assets
- The scope includes passenger terminals and city-side infrastructure such as buildings, boundary walls, equipment, vehicles and software.
- Additional development
- Land is proposed to be made available for city-side development.
- Next step
- Market feedback will be reviewed by Airports Authority of India before the proposal is submitted for final recommendation by the PPP Appraisal Committee.
Quotes
Ministry of Civil Aviation
Government ministry responsible for the airport privatisation proposal
“Accordingly, eligible technical experience would not be restricted exclusively to the aviation sector and would be assessed with reference to the infrastructure sub-sectors included in the Harmonised Master List of Infrastructure”
businesstoday.in
“The feedback of the private players on the proposal for bundling of airports will be reviewed by Airports Authority of India, based on which necessary modifications to the proposal will be considered.”
businesstoday.in
Sources
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