INFRASTRUCTURE

Amritsar, Varanasi and Hubballi among 11 airports slated for privatisation

The government plans to award 11 airports, including those in Varanasi and Tirupati, to private players in five bundles under the public-private partnership (PPP) model.
The Civil Aviation Ministry has proposed the engagement of private partners for 11 airports, grouped into five bundles, with each bundle to be awarded to a single concessionaire, according to an official document.
Five major airports are to be bundled with six smaller airports.
The Public-Private Partnership Appraisal Committee (PPPAC), at its meeting held on August 4, had given in-principle nod for the ministry’s proposal.
Under the proposal, Amritsar and Kangra-Gaggal airports will be one bundle, while Varanasi, Gaya and Kushinagar will be another. Airports in Bhubaneswar and Hubballi will be in one group, and Raipur and Aurangabad airports will be in another bundle.
Besides, Tiruchirappalli and Tirupati airports will be in a separate bundle, according to the minutes of the PPPAC meeting.
The PPPAC, chaired by Economic Affairs Secretary Anuradha Thakur, appraises PPP projects in the Central sector.
These airports are to be leased out under the PPP model for a concession period of 50 years.
According to the document, the number of airport bundles that may be awarded to a single bidder would be capped to mitigate the risks arising from market concentration and potential over-leveraging, including their possible cascading impact across projects.

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