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Six More airports of India on the Privatisation block

AAI- Airports Authority of India, the nodal airport owner and operator of 120 odd airports had announced plans to privatise 6 more airports in addition to the 6 airports it already privatised in February 2019.

The AAI Board took the decision to privatise its Airports at Amritsar, Varanasi, Bhubaneswar, Raipur, Indore and Trichy, in its meeting held on September 5 and forwarded the decision to Ministry of Civil aviation for further course of action.

  • In India, AAI is the owner of almost all the airports with varying degree of equity share.
  • in the world’s largest civil aviation market, USA, almost all the airports are owned by the respective Municipal and civic authorities.
  • AAI started its privatisation bid in 2005, when it gave away prized Mumbai and Delhi airports in Private-Public partnership basis for up gradation, Management and operation of these airports on revenue share basis.
  • In February 2019 AAI invited bids to privatise Ahmedabad, Jaipur, Lucknow, Guwahati, Mangalore and Trivandrum airports and all the 6 were bagged by Ahmedabad based ADANI group on highest Per Passenger service Fee basis.
  • Per passenger Revenue is the amount to be paid to the AAI by the winning bidder for every passenger passing through the airport.
  • Prior to February 2019 privatisation AAI had formed 7 JV airports viz. New Delhi, Mumbai, Hyderabad, Bangalore, Kochi, Kannur and Nagpur with various Private sector partners.
    Kochi Intl airport is the First JV airport to be built under PPP mode in 1999.

    Tirupati Airport- which had around 450 acres of city side land for Development
  • February 2019 privatisation added 6 more airports under the JV scheme and the new announcement if successful will take that tally to 19 airports out of the 120 operating airports.

The AAI board reiterated that the proceeds of the move will be utilised to improve the aviation infrastructure in the country. with UDAN scheme to connect the hinterland and expand aviation reach of the country, the government and AAI needs to invest heavily in the new infrastructure. AAI board felt the need to monetise the existing assets for the future expansion. with this in mind and make the new round of privatisation attractive for the prospective bidders, AAI embarked upon the land monetization of these airports on the city side.

accordingly AAI drawn a road map to develop around 760 acres of prime land at 8 of its airports to generate good quantum of Non Aeronautical revenues to shore up its heavy investment plan for the future. accordingly 145 acres near Kolkatta airport, 45 acres of Amritsar airport, 44 acres of Bhubaneswar airport, 35 acres of Jaipur airport, 60 acres near Varanasi airport, 217 acres of Lucknow airport, 80 acres near Raipur airport and 117 acres of Tirupati airport will be developed n the PP mode to shore up its revenues and spur the Non Aero revenues of the airports, to make them profitable strategic business units.All these land parcels are part of such airports alienated on the city side for development as non Aero development zone.

rambabu vankayalapati

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