Union Cabinet decided to lease out 6 airports of AAI under PPP model

The Union Cabinet chaired by the Prime Minister Shri Narendra Modi has approved the following:-

• "In-principle" approval for leasing out six airports of AAI viz. Ahmedabad, Jaipur, Lucknow, Guwahati, Thiruvananthapuram, and Mangaluru for operation, management and development under Public Private Partnership (PPP) through the Public Private Partnership Appraisal Committee (PPPAC).
• This is expected to enhance the revenue to AAI and increased economic development in these areas in terms of job creation and related infrastructure.
• The increase in domestic and international air travel in India combined with congestion at most airports, and the strong traffic growth at the 5 airports which were privatized over a decade ago has attracted the attention of several international operators and investors.
• The airport sector is the top contender among infrastructure sectors in terms of international interest.
• International operators and investors prefer brownfield airport expansion opportunities with having more than 3-4 million passenger capacity.
• The airport sector may provide an immediate opportunity to attract foreign direct investment (FDI) by the adoption of a PPP approach.