Sunday , June 20 2021

6 airports got the head for privatization; AAI holds a smaller share



The government decided to privatize six airports on Thursday. Those selected for work, management and development through the PPP model are Lucknow, Ahmedabad, Jaipur, Mangaluru, Thiruvananthapuram and Guwahati.

This comes 12 years after the privatization of the Delhi and Mumbai airports in 2006. The decision was made at a session of the Government of the Union. "Following the modernization of the airports in Delhi and Mumbai through the JPP model, we have seen a great improvement in the quality of airports, and tourism flows have also risen, so we decided to develop another six airports under this model," said Justice and Justice Minister Ravi Shankar Prasad. A group of secretaries of the Ministry of Civil Aviation and Departments of Economic Affairs and Expenditure, led by the Chief Executive Officer of NITI Aayog Amitabh Kant, will determine sales outlines. Government sources said the airports would be offered for 30 years, and the selected private player would receive a controlling stake. "The Indian Air Force (AAI) will hold a smaller stake, just like at Delhi and Mumbai, while the private player holds at least 75 percent of the stake," said the officer aware of the development. Bidding will take place in the profit sharing model, whereby the bidder is required to pay a certain share of gross income to the AAI. This is known as a concession fee. The bidder who cites the highest compensation wins. The same model follows the privatization of Delhi and Mumbai airports.

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According to the agreement, Delhi GMR must each year distribute 45.99 percent of its revenue to AAI.

The GVK, which operates at Mumbai Airport, allocates 38.7 percent of revenue. AAI's profit largely depends on the income earned by these two airports. He made about 100 billion RRS from GMR and GVK. Sector experts believe that selected privatization airports will also receive attractive bids. "The offer is likely to attract a good response from global operators, as all six airports are growing fast, with robust catchment areas and low uncertainties. The concession fee is likely to be higher than the limited earnings AAI deserves due to many administrative constraints. use to develop airport inland, "said Amber Dubey, aviation and defense chief of KPMG consulting firm.

6 airports got the head for privatization; AAI holds a smaller share

In order to resolve the rush in the Indian sky, the government announced a plan to launch a massive project to build and upgrade the airport. This would lead to a total cost of about 2 trillion Rs over the next 10 years, preparing it for treating a billion air travel per year. The government expects that most of the investment will come from private players. The decision to change the privatization model comes after AAI's plans to take over the operation and maintenance of the airport terminal in Ahmedabad and Jaipur have ended. Industry sources say private gamers remained far away while finding the O & M terminals at the airport unattractive. According to this model, only certain activities such as the maintenance of terminals and car parks in Jaipur and Ahmedabad airports should be dedicated to private developers. Leaders of major airport developers welcomed the decision Thursday, but warned that the appetite for investment would depend on the terms and conditions of the sale. "If the terms and conditions of the sale are simple and attractive, there will be great interest from the bidders. We will go through the details and make the decision," said R K Jain, Executive Director of Mumbai International Airport.

Six airports are

  • Lucknow
  • Ahmedabad
  • Jaipur
  • Mangaluru
  • Thiruvananthapuram
  • Guwahati


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