New Delhi: The Union Cabinet chaired by Minister Shri Narendra Modi has given in-principle approval for leasing out six airports of AAI –Ahmedabad, Jaipur, Lucknow, Guwahati, Thiruvananthapuram and Mangaluru for operation, management and development under Public Private Partnership (PPP) through Public Private Partnership Appraisal Committee (PPPAC).
This is expected to enhance the revenue to AAI and increased economic development in these areas in terms of job creation and related infrastructure, an official statement said.
Constitution of an Empowered Group of Secretaries headed by CEO, NITI Aayog with Secretary, Ministry of Civil Aviation, Secretary, Department of Economic Affairs and Secretary, Department of Expenditure will decide on any issue falling beyond the scope of PPPAC.
The increase in domestic and international air travel in India combined with congestion at most airports, and the strong traffic growth at the 5 airports which were privatized over a decade ago has attracted the attention of several international operators and investors.
The airport sector is the top contender among infrastructure sectors in terms of international interest. International operators and investors prefer brownfield airport expansion opportunities with having more than 3-4 million passenger capacity. The airport sector may provide an immediate opportunity to attract foreign direct investment (FDI) by adoption of a PPP approach.