In addition, the government plans to provide 25 airports for private players over the next four years as part of the National Monetization Plan.
The Center has decided to complete the process of privatizing the 13 airports currently under the State Administration of India (AAI) by the end of this fiscal year. As part of the first significant asset monetization to make serious efforts to use the funds raised for more public use investments.
In an interview with ET, AAI Chairman Sanjeev Kumar said. “We have sent the Ministry of Aviation a list of 13 airports proposed for PPP (Public-Private-Partnership). It is planned that tenders at these airports will be complete by the end of this fiscal year.
He added that the bidding model would be based on the passenger revenue model used previously and successfully. And “Jewar Airport (in Greater Noida) is also recommend for the same model.” Last month, the AAI board approve the privatization of 13 airports six large and seven smaller by early next year as part of the government’s ambitious National Monetization Channel (NMP). The Center is expect to attract 3,660 million rupees of private investment in the airport in the 2024 fiscal year.
Kumar also said that despite the Covid-19 pandemic, there would be strong investor interest in taking on these projects.
As the disease has short-term business consequences, and airports have been on offer for 50 years.
AAI decided to combine seven small airports with six large airports Varanasi with Kushinagar and Gaya; Amritsar with Kangra; Bhubaneswar with Tirupati; Raipur with Aurangabad; Indore with Jabalpur; and Trichy with Hubli. As part of the NMP, the Center plans to deliver 25 airports, including the 13 above. Through a public-private partnership (PPP) over the next four years.
Many experts believe that the Center’s move to relinquish control and privatize airports. Will guarantee AAI a significant source of revenue regardless of how much financially privatized airports cost.
AAI’s profit fell sharply due to the coronavirus pandemic. The Government Plans The company post a massive loss of 1962 rupees in fiscal year 21. And was forces to borrow 1,500 rupees from the State Bank of India to meet its working capital needs, including salaries. However, as the Covid situation improves and passenger traffic increases. AAI does not need to increase its working capital this year.
“Our investment will continue as planned. To meet investment needs for this fiscal year, we have taken out a loan of Rs 1,000. In addition, decisions on additional loans will be made based on future financing terms,” Kumar was quote as tell by the daily financial newspaper.
