Home / Business and Economy / Govt Bundles 5 Major, 6 Smaller Airports for PPP Development
Govt Bundles 5 Major, 6 Smaller Airports for PPP Development
24 Aug
Summary
- Eleven airports will be awarded to private players in five bundles.
- An estimated Rs 8,622 crore will be invested by concessionaires.
- A joint management period and AAI employee retention is proposed.
The Indian government is set to lease eleven airports to private operators under a public-private-partnership model, grouping them into five distinct bundles. This initiative, which has received an in-principle approval from the Public Private Partnership Appraisal Committee (PPPAC), involves combining five major airports with six smaller ones. The concessionaires are expected to invest a substantial Rs 8,622 crore in the development and operation of these airports over a 50-year lease period.
The proposal, approved by the PPPAC on August 4, 2026, aims to streamline operations and boost infrastructure. Specific bundles include Amritsar and Kangra-Gaggal, Varanasi, Gaya, and Kushinagar, among others. To mitigate risks, the number of bundles awarded to a single bidder will be capped.
Additionally, the plan includes a one-year joint management period with existing Airports Authority of India (AAI) employees, with concessionaires required to retain 60% of AAI staff for up to three years. The selection of these 11 airports followed a rigorous data-driven assessment by AAI of both major and smaller airfields based on various operational and financial parameters.
