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Govt planning to privatise 20-25 airports in 2nd phase: AAI chairman

The Airport Authority of India's Chairman addressed a press briefing on Friday, where he informed that the Central government is planning to privatise 20-25 more airports. The government had earlier decided to privatise six major airports in February.

Govt planning to privatise 20-25 airports in 2nd phase: AAI chairman
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Published : Jul 26, 2019, 10:57 PM IST

New Delhi: After deciding to privatise six major airports in February this year, the Central government is planning to privatise 20-25 more in the next phase with an expectation that there will be significant participation by foreign airports, said AAI Chairman Guruprasad Mohapatra on Friday.

The Central government is planning to privatise 20-25 more in the next phase
Adani Group had won the bids to operate, manage and develop the six airports Lucknow, Ahmedabad, Jaipur, Mangaluru, Thiruvananthapuram, and Guwahati which the Airports Authority of India had put up for privatisation in the first round.
"We have privatised six airports... We are now planning to privatise 20-25 airports in next phase," said Mohapatra at a press briefing here.
He said the AAI will decide the names of these airports with annual passenger traffic over 1.5 million soon and recommend them to the Ministry of Civil Aviation. "They will take a final call," he said.
In the latest bureaucratic shuffle, Mohapatra was transferred to the Department for Promotion of Industry and Internal Trade, which comes under the Ministry of Commerce.

On Friday, Mohapatra said he would take charge as DPIIT secretary on August 1.

Explaining about the planning related to the second round of privatisation, he said, "What we have done is we have appointed a consultant to understand relative attractiveness of various airports for private sector investments."

"It is open for everyone to bid. There are tremendous possibilities. With this (success in first round), I am sure that in the next round of privatisation we do, I am hoping to see a lot of foreign airports participating in it."

He said airports such as Dublin and Munich showed tremendous interest but they "probably required more confidence" and waited to see the success of the first round of privatisation.

"They have seen that now that it is successfully happening. So, in the second round, we expect signification participation coming from airports like them," he said.

In November last year, the government had decided to privatise airports in Lucknow, Ahmedabad, Jaipur, Mangaluru, Thiruvananthapuram, and Guwahati for operation, management and development through public-private partnership (PPP) model.

In February, the Adani Group bagged contract for all six airports by winning the bids with huge margins.

The AAI had chosen the winner on the basis of the "per-passenger fee" offered by the bidders.

On July 3, the Union Cabinet had approved the leasing out of Ahmedabad, Lucknow and Mangaluru airports to Adani Group. The cabinet is yet to approve the leasing out of the other three.

New Delhi: After deciding to privatise six major airports in February this year, the Central government is planning to privatise 20-25 more in the next phase with an expectation that there will be significant participation by foreign airports, said AAI Chairman Guruprasad Mohapatra on Friday.

The Central government is planning to privatise 20-25 more in the next phase
Adani Group had won the bids to operate, manage and develop the six airports Lucknow, Ahmedabad, Jaipur, Mangaluru, Thiruvananthapuram, and Guwahati which the Airports Authority of India had put up for privatisation in the first round.
"We have privatised six airports... We are now planning to privatise 20-25 airports in next phase," said Mohapatra at a press briefing here.
He said the AAI will decide the names of these airports with annual passenger traffic over 1.5 million soon and recommend them to the Ministry of Civil Aviation. "They will take a final call," he said.
In the latest bureaucratic shuffle, Mohapatra was transferred to the Department for Promotion of Industry and Internal Trade, which comes under the Ministry of Commerce.

On Friday, Mohapatra said he would take charge as DPIIT secretary on August 1.

Explaining about the planning related to the second round of privatisation, he said, "What we have done is we have appointed a consultant to understand relative attractiveness of various airports for private sector investments."

"It is open for everyone to bid. There are tremendous possibilities. With this (success in first round), I am sure that in the next round of privatisation we do, I am hoping to see a lot of foreign airports participating in it."

He said airports such as Dublin and Munich showed tremendous interest but they "probably required more confidence" and waited to see the success of the first round of privatisation.

"They have seen that now that it is successfully happening. So, in the second round, we expect signification participation coming from airports like them," he said.

In November last year, the government had decided to privatise airports in Lucknow, Ahmedabad, Jaipur, Mangaluru, Thiruvananthapuram, and Guwahati for operation, management and development through public-private partnership (PPP) model.

In February, the Adani Group bagged contract for all six airports by winning the bids with huge margins.

The AAI had chosen the winner on the basis of the "per-passenger fee" offered by the bidders.

On July 3, the Union Cabinet had approved the leasing out of Ahmedabad, Lucknow and Mangaluru airports to Adani Group. The cabinet is yet to approve the leasing out of the other three.
Intro:New Delhi: The centre today said that 20-25 airports would be privatised in the next phase in addition to the six airports that have been backed by private companies early this year.

"We have appointed two consultants to understand which airports are attractive for the private investments," Airport Authority of India chairman Guruprasad Mohapatra said. "One consultant report is ready and another one is under consideration to see what best combination can be thought of."


Body:Last year, the government had decided to privatise six airports through a public-private partnership (PPP) model, five of which was bagged by the Adani group in February 2019. The six airports are Lucknow, Ahmedabad, Jaipur, Mangaluru, Thiruvananthapuram and Guwahati.

Speaking on government plans for second airports in a city, Mohapatra said the civil aviation minister had written a letter to the chief ministers of West Bengal and Tamil Nadu about finding the land for projects in Kolkata and Chennai, respectively.

He added that Ahmedabad will have a second airport and land is almost finalised in Bhubaneswar, adding that a visit to the sites is remaining before a final nod.




Conclusion:"We are requesting state governments to not acquire the land, just identify the land, declare it technically feasible and then impose the building restrictions around that. So that in future whenever we need the land we can acquire it," Mohapatra said.

The AAI chairman said except Delhi, Hyderabad and Bengaluru, no airport in the country has 4,000 acres of land. "We never thought aviation would be a common man's activity, " he quipped. "We always thought aviation would be of elitist activity and so we didn't acquire any land like railways have."
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