New Delhi: In a first, the Airports Authority of India (AAI) has identified several airports it plans to develop through joint ventures with state governments.
A special purpose vehicle (SPV) will be formed to develop the airports at Kushinagar (Uttar Pradesh), Devgarh (Rajasthan), Jharsuguda (Odisha) and Shirdi (Maharashtra), with the respective state governments being equity partners.
"Airports can be developed through the SPV route rather than a stand-alone property of AAI, so that states also become a partner. We have identified a few places such as Kushinagar, Devgarh, Jharsuguda where we are exploring the possibility of an SPV. For Shirdi also, the draft memorandum of understanding (MoU) is pending with the state government," AAI chairman R K Srivastava told Business Standard.
This is the first time AAI will enter into strategic partnerships with states to develop airports through SPVs. At present, states only provide land required for building or expansion of the airports, along with road and power connectivity to AAI. However, at a few as the newly-built Chandigarh International Airport, the Punjab government's Greater Mohali Area Development Authority and the Haryana Urban Development Authority are equity partners.
24/11/15 Somesh Jha/Business Standard
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A special purpose vehicle (SPV) will be formed to develop the airports at Kushinagar (Uttar Pradesh), Devgarh (Rajasthan), Jharsuguda (Odisha) and Shirdi (Maharashtra), with the respective state governments being equity partners.
"Airports can be developed through the SPV route rather than a stand-alone property of AAI, so that states also become a partner. We have identified a few places such as Kushinagar, Devgarh, Jharsuguda where we are exploring the possibility of an SPV. For Shirdi also, the draft memorandum of understanding (MoU) is pending with the state government," AAI chairman R K Srivastava told Business Standard.
This is the first time AAI will enter into strategic partnerships with states to develop airports through SPVs. At present, states only provide land required for building or expansion of the airports, along with road and power connectivity to AAI. However, at a few as the newly-built Chandigarh International Airport, the Punjab government's Greater Mohali Area Development Authority and the Haryana Urban Development Authority are equity partners.
24/11/15 Somesh Jha/Business Standard
