Thursday, September 22, 2016

Non-aero revenue: Airports Authority looks to ‘cash in’ on its spare city land

Following a directive from the Prime Minister’s Office, the state-owned Airports Authority of India (AAI) is planning to monetise the city-side portion of its total land bank of around 55,000 hectares across the country. This is expected to significantly boost the non-aero revenue of the AAI as it would lease the city side land for purposes such as hotels, warehouses and cold storage.
“We have around 55,000 hectares of land across the country. Not all of this can be monetised, but we are looking at monetising the city side land, which comprises about 30-35 per cent of the total land bank,” AAI chairman Guruprasad Mohapatra said on Tuesday. The AAI has already initiated the process of monetising city side land at Bhubaneswar airport.
Mohapatra said the AAI has got the mandate from the PMO and Niti Aayog for monetising spare land. The AAI earned revenues of Rs 10,824 crore in 2015-16, and profit before tax of Rs 3,697 crore.
The AAI will monetise its land by leasing it out to private companies, giving it on a revenue share basis and through a combination of leasing and revenue sharing. It doesn’t plan to have any management control in the entity that will be taking the land on lease or on revenue share basis.
Non-aero revenue: Airports Authority looks to ‘cash in’ on its spare city land.
22/09/16 Indian Express
To Read the News in full at Source, Click the Headline


Post a Comment