The Central Government is reportedly preparing to hand over 11 airports across the country to private companies under the Public-Private Partnership (PPP) model. The list includes Tirupati Airport in Andhra Pradesh and Varanasi Airport in Uttar Pradesh. According to official documents, the process of privatising these airports has moved forward with a proposal to divide them into five groups and award each group to a single bidder.
PPP Appraisal Committee Gives In-Principle Approval
The Ministry of Civil Aviation has proposed handing over 11 airports to private operators under the PPP model. The proposal reportedly received in-principle approval from the Public-Private Partnership Appraisal Committee (PPPAC) at a meeting held on August 4, chaired by Economic Affairs Secretary Anuradha Thakur.
The move is part of the Centre’s broader strategy to expand private participation in the aviation sector and improve airport infrastructure and operational efficiency.
11 Airports Divided into Five Groups
The 11 airports are proposed to be divided into five groups, with each group potentially being awarded to a single bidder. The groups reportedly include five major airports and six smaller airports.
The proposed groups are:
- Group 1: Tirupati – Tiruchirappalli
- Group 2: Amritsar – Kangra-Gaggal
- Group 3: Varanasi – Gaya – Kushinagar
- Group 4: Bhubaneswar – Hubballi
- Group 5: Raipur – Aurangabad
The airports may be leased to private operators for a concession period of around 50 years.
Private Operators May Invest ₹8,622 Crore
The selected concessionaires are expected to invest approximately ₹8,622 crore in the 11 airports. The proposed investments are likely to be used for capacity expansion, airport modernisation and infrastructure development.
The government expects private participation to help improve airport facilities and enable these airports to handle the projected growth in passenger traffic over the coming years.
What Will Happen to AAI Employees?
One of the major concerns surrounding the proposed privatisation is the future of employees currently working under the Airports Authority of India (AAI).
According to the proposal, the government and the successful private operators may jointly manage the existing AAI workforce during the first year after the privatisation process begins. Subsequently, decisions regarding the continuation of employees could come under the purview of the private operators.
However, a provision reportedly requires private operators to retain at least 60% of the existing workforce for a minimum period of three years. Further clarity is awaited on the exact terms and conditions governing employee protection.
Private Investment in Indian Aviation Sector Growing
Private investment in India’s aviation infrastructure has been increasing steadily. GMR Airports Limited is reportedly planning to invest around ₹19,400 crore to expand the Hyderabad and New Delhi airports.
The expansion plans assume greater significance amid expectations that air passenger traffic in India will continue to rise substantially over the next decade.
GMR Airports Executive Director for Finance and Strategy, Saurabh Chawla, has reportedly indicated that the expansion projects could be completed over the next five to seven years.
Focus on Capacity Expansion and Modernisation
The proposed airport expansion projects are expected to focus on increasing passenger-handling capacity, modernising facilities and strengthening airport infrastructure.
With air travel demand projected to grow significantly, both the government and private airport operators are increasingly looking at long-term investments to accommodate future passenger volumes.
Final Decision Yet to Be Taken
The Centre’s proposal to hand over 11 airports, including Tirupati, to private companies under the PPP model could become a significant development in India’s aviation sector.
However, several issues still require clarity, including the final approval, tendering process, terms of the concession agreements, protection of AAI employees and the potential impact on passengers.
The final decision on the proposed privatisation and the subsequent bidding process will determine how these airports are managed and developed in the years ahead.
