Follow Us:
Saturday, December 07, 2019

For privatisation of six airports, per passenger fee is bidding criteria

The government had bid out airports like Delhi and Mumbai on revenue sharing basis with the state-owned Airports Authority of India holding 26 per cent stake.

By: ENS Economic Bureau | New Delhi | Published: December 16, 2018 2:10:33 am
Under the latest document, the airports will be leased out for a period 50 years instead of 30 years in the last privatisation process.

The Ministry of Civil Aviation has announced per passenger fee as the bidding criteria for the privatisation of six airports—Ahmedabad, Jaipur, Lucknow, Guwahati, Trivandrum and Mangalore. According to the request for proposal (RFP) document released on Friday, the bidder quoting the highest per-passenger fee for domestic travellers will be awarded the rights to operate, manage and develop the six non-metro airports.

“The Concessionaire shall broadly be responsible for operations and management of the existing airport assets, as well as for designing, engineering, financing, construction and development of the further/additional air-side, terminal, city-side and land-side infrastructure for the Airport,” the RFP document said. All the six airports are profit making entities for the government.

The government had bid out airports like Delhi and Mumbai on revenue sharing basis with the state-owned Airports Authority of India holding 26 per cent stake. Under the latest document, the airports will be leased out for a period 50 years instead of 30 years in the last privatisation process.

“Per-passenger revenue criteria is better than revenue sharing model. It is difficult to become viable for airports if there is high revenue sharing with the AAI,” an industry executive said. This will be the second round of airport privatisation in the country after Delhi, Mumbai, Hyderabad and Bengaluru were opened for private investment 12 years ago. The single-stage bidding process is open till February 14, 2019.

For all the latest Business News, download Indian Express App

Advertisement
Advertisement
Advertisement
Advertisement