The Indian government is reportedly preparing to privatize 11 airports by the end of the financial year 2025-26, including several loss-making ones. The strategy involves bundling unprofitable airports with commercially successful ones to attract investors. This move marks the third round of airport privatization in India.
Government’s Airport Privatization Strategy
According to reports, the Airports Authority of India (AAI) will bundle profitable airports with loss-making ones to enhance the appeal for private investors. For example, the Varanasi airport will be packaged with Kushinagar and Gaya, which are currently underperforming. Similar bundling will be applied to other regions, including:
- Bhubaneswar and Amritsar bundled with Hubli and Kangra
- Raipur and Tiruchirapalli bundled with Aurangabad and Tirupati
This approach ensures that private operators can balance revenue streams while improving infrastructure at struggling airports.
The full list include:
Bhubaneswar, Varanasi, Amritsar, Trichy, Indore, Raipur, Calicut, Coimbatore, Nagpur, Patna, Madurai, Surat, Ranchi, Jodhpur, Chennai, Vijayawada, Vadodara, Bhopal, Tirupati, Hubli, Imphal, Agartala, Udaipur, Dehradun and Rajahmundry.
Why the Government is Privatising Airports
The decision to privatize airports aligns with Prime Minister Narendra Modi’s target to generate ₹47,000 crore from asset sales in FY 2025-26. By offloading state assets, the government aims to reduce its fiscal deficit, which currently stands at 4.4% of the GDP.
Impact on Air Traffic and Infrastructure
The 11 airports reportedly handled 13.5 million domestic passengers and 2.4 million international passengers in the first nine months of 2025. While this accounts for approximately 10% of domestic and 4% of international air traffic, the government hopes privatization will lead to enhanced passenger experience, better facilities, and operational efficiency.
Potential Bidders and Industry Competition
Billionaire Gautam Adani’s Adani Airport Holdings Ltd is expected to be a leading contender in the bidding process. The company already operates several airports and has a strong presence in the sector. GMR Airports Ltd, which manages the Delhi International Airport, may also participate in the bidding.
Conclusion
As the government moves ahead with its privatization plans, the success of this initiative will depend on competitive bidding, transparent operations, and subsequent improvements in airport infrastructure. For travelers and local economies, the expectation is enhanced connectivity, better facilities, and improved service quality.
