Civil aviation minister Jyotiraditya Scindia has revealed plans of leasing out 11 more airports in India. He also stated that India’s passenger number will reach as much as 40 crores a year in the next five years.
The government leased six airports in 2019, Lucknow, Ahmedabad, Mangalore, Jaipur, Guwahati, and Thiruvananthapuram, and industrialist Gautam Adani’s Adani Group won the bidding for all six airports.
11 More Airports To Be Leased Out Confirms Civil Aviation Minister
The aviation business in India is still expanding at the quickest rate in the world, and it is on its way toward revival.
Domestic air travel made a new record on Monday, December 5, when the number of domestic passengers reached 4,13,716.
Jyotiraditya Scindia, India’s minister of civil aviation, believes that during the next five years, the country’s annual air passenger count would reach approximately 40 crore.
Additionally, Scindia said that the government is planning to lease out 11 more airports in an effort to strengthen the nation’s aviation industry. These airports include Chennai, Kolkata, Jabalpur, Indore, Rajkot, Vijaywada, Raipur and Amritsar.
As per Scindia, “Our plan is to lease out the assets for a period and gain cash flow, which will then be reinvested to build out more airports in tier 2 and tier 3 cities. Our plan is to lease out another 11 airports. So, that process is on and shortly you will be hearing about that.”
Cabinet Note To be Formed For Lease of 50 Years
The Airport Authority of India (AAI) has 11 airports that the Center will soon put up for lease to private parties.
The minister further stated that as of 2014, there were only 74 airports, along with waterdromes. As per him, the fleet, which once consisted of about 400 aircraft, has now grown to 700 aircraft.
The aviation ministry is putting together a cabinet note for leasing the airports for 50 years, and the AAI anticipates receiving an upfront payment of more than Rs 8,000 crore.
Construction, operation, and management of the airports may be included in the bid specifications for the upcoming leasing of airports. Scindia clarified that the highest fee per passenger will be used to determine the winning bid formula.
Through the asset monetization of these airports, the Centre hopes to raise Rs 20,000 crore.
