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Govt Steps up Move to Lease 11 more Airports under PPP Model

2025-12-29

The government is accelerating efforts to lease out 11 more airports under the public–private partnership (PPP) model, with the proposal gaining significant momentum following its review and approval by the Ministry of Civil Aviation (MoCA), according to sources.

Airports proposed for leasing in this tranche include Amritsar, Varanasi, Bhubaneswar, Raipur and Tiruchirappalli, among others. Sources indicated that the final contours and parameters of the scheme could be announced during the upcoming Union Budget, marking a key step in the next phase of airport monetisation.

“The Ministry conducted internal assessments on the operational, financial and structural aspects of placing these airports under a public–private partnership framework,” a source tracking the development said. The evaluations were aimed at ensuring readiness of the selected airports for private participation while safeguarding service quality, passenger experience and regulatory oversight.

The move is part of the government’s broader National Monetisation Pipeline (NMP-II), under which 25 Airports Authority of India (AAI)-operated airports have been identified for leasing to private operators. The objective is to unlock value from brownfield airport assets, attract private investment, and enhance efficiency through modernisation and improved management practices.

Airport leasing under the PPP model has already been implemented at major airports in Delhi, Mumbai, Hyderabad and Bengaluru, followed by a second round covering airports such as Ahmedabad, Lucknow and Jaipur. The government has maintained that ownership of airport land will remain with AAI, while operations, management and development responsibilities will be transferred to concessionaires for a fixed period.

Industry observers note that the next round of leasing is expected to draw strong interest from domestic and global infrastructure players, given India’s steady growth in air passenger traffic and long-term aviation potential.

The proposed leasing of additional airports is also seen as critical for strengthening regional connectivity, improving airport infrastructure and supporting the government’s goal of making India a global aviation hub, while easing the financial burden on AAI.

News source: The Hindu Businessline

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