Wednesday, March 17, 2021

Government to bundle Loss making and profitable airports for sale

According to the latest government briefings, companies looking to participate in the next round of airport privatization will have to bid for both loss-making facilities along with profit-making ones. The government has decided to bundle seven airports that make losses with six profit-making airports.

According to the list released, the profit-making airports include Trichy, Bhubaneswar, Raipur, Amritsar and Indore. While the loss-making airports list include Salem, Jharsuguda, Jalgaon, Jabalpur and Kangda.

The government had previously announced that a maximum of 10 airports had to be privatized in the third round of airport privatization. Pradeep Singh, Ministry of Civil Aviation secretary had maintained that “In the third round (of airport privatization) six to 10 airports are going to be privatized,”.

During the presentation of Budget 2021-22, Finance Minister Nirmala Sitharaman had suggested that the next lot of airports would be privatized in tier 2 and 3 towns and cities. She had further added that the airports would be monetized for operations and management concessions.

“Seven port projects worth more than Rs 2,000 crore will be offered by major ports in a public-private partnership model, in financial year 2021-2022, to move to a model where private partners will manage operations of ports,” she had said.

Reportedly, the terms are likely to be similar to the terms for six airports that were put up for bidding in 2019, which were reportedly acquired by the Adani Group. The Adani Group won all six airports that were up for bidding in 2019 — Ahmedabad, Lucknow, Mangalore, Jaipur, Guwahati and Thiruvananthapuram.

17/03/21 Shivani Khanna/Indian Wire

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