1 week ago
India Gives In-Principle Nod to Lease 11 Airports
The Indian government wants private companies to run and improve 11 airports.
The airports would be grouped into five packages, with larger airports paired with smaller ones.
Each package would be given to one private company.
The companies would operate the airports for 50 years and are expected to invest ₹8,622 crore.
The government says this could bring private money and expertise to the airports.
Pairing larger and smaller airports could help the smaller ones remain financially sustainable.
The plan also includes a one-year period in which private companies and existing airport employees would work together.
Private operators would have to keep 60% of Airports Authority of India employees for up to three years.
The plan has only received approval in principle, so the government will first consult potential investors before seeking a final recommendation.
The Public Private Partnership Appraisal Committee approved in principle a plan to lease 11 Airports Authority of India airports.
The airports would be offered in five bundles: Amritsar-Kangra, Varanasi-Gaya-Kushinagar, Bhubaneswar-Hubballi, Raipur-Aurangabad and Tiruchirappalli-Tirupati.
The proposed public-private partnership concessions would cover airport operations, management and development for 50 years.
Concessionaires are expected to invest ₹8,622 crore, while a single bidder would face a cap on the number of bundles it could win.
The Ministry of Civil Aviation will seek investor feedback before potentially modifying the proposal and submitting it for final approval.
- Who
- The Government of India, the Ministry of Civil Aviation, the Airports Authority of India and the Public Private Partnership Appraisal Committee are involved; private concessionaires may operate the airports.
- What
- The government has approved in principle a plan to lease 11 Airports Authority of India airports through five bundled public-private partnership concessions.
- Where
- The airports are in Amritsar, Kangra-Gaggal, Varanasi, Gaya, Kushinagar, Bhubaneswar, Hubballi, Raipur, Aurangabad, Tiruchirappalli and Tirupati.
- When
- The proposal was considered at the Public Private Partnership Appraisal Committee's meeting on August 4; the report was published on August 23, 2026.
- Why
- The plan aims to attract private-sector capital and expertise, support smaller airports by bundling them with larger facilities, and reduce risks from market concentration and over-leveraging.
Key facts
- Airports involved
- 11 Airports Authority of India airports
- Number of bundles
- Five
- Concession period
- 50 years
- Expected investment
- ₹8,622 crore
- Approving body
- Public Private Partnership Appraisal Committee
- Employee provision
- A one-year joint management period, followed by a requirement to retain 60% of Airports Authority of India employees for up to three years
- Next step
- The Ministry of Civil Aviation will conduct a market-sounding exercise with infrastructure investors before seeking the committee's final recommendation.
Quotes
Civil aviation ministry document
Official document outlining the proposed airport concession terms
“Further, the concessionaire would be required to retain 60% AAI employees up to 3 years. The previous round of transaction provided for 1-year joint management period and 2-year deemed deputation period.”
deccanchronicle.com
freepressjournal.in
“Historical evidence suggests that such arrangement with the concessionaire has been acceptable to AAl employees.”
deccanchronicle.com
freepressjournal.in
Sources
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