Airport Privatisation in India


Doodlebrary

Doodlebrary

April 13, 2024

  • The privatization of airports in India was initiated in September 2003 under the government led by Prime Minister Atal Bihari Vajpayee, who was heading the National Democratic Alliance (NDA) coalition government.
  • This marked a significant milestone in India’s aviation sector.
  • The first airports to undergo privatization were the ones in Delhi and Mumbai, which were the two largest and busiest airports in the country.
  • The decision to privatize these airports was aimed at improving their infrastructure, services, and overall efficiency.
  • It also sought to attract private investments and expertise to modernize these airports and keep up with the growing demand in the aviation sector.
  • The privatization of Delhi and Mumbai airports set the stage for further airport privatization initiatives in India, with several other airports subsequently being privatized or operated under public-private partnership (PPP) models.
  • This approach has played a crucial role in the development and expansion of India’s airport infrastructure over the years.
  • Indian government is considering privatizing 13 airports operated by the Airports Authority of India (AAI).
  • These airports are being considered for privatization to attract investors and potentially make them more profitable.
  • The government is exploring the possibility of bundling profitable and non-profitable airports together to create more attractive investment packages.
  1. Mumbai International Airport: Adani Group holds a 74% stake in Mumbai International Airport, while the remaining 26% stake is with the Airports Authority of India (AAI).
  2. Delhi International Airport: GMR Group holds a 54% stake, the Airports Authority of India holds 26%, and Fraport AG and Eraman Malaysia each hold a 10% stake in Delhi International Airport.
  3. Hyderabad International Airport Ltd: AAI, along with the Government of Andhra Pradesh, holds a 26% stake in Hyderabad International Airport Ltd.
  4. Bangalore International Airport: AAI holds a 26% stake in Bangalore International Airport along with the Karnataka Government.
  • The privatization of airports is a common strategy adopted by governments worldwide to improve the efficiency and management of these facilities, attract private investments, and stimulate economic growth in the aviation sector.
  • By involving private entities, the government can leverage their expertise and resources to enhance airport infrastructure and services.

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