|LGBI airport to be leased out in PPP mode|
NEW DELHI, Nov 8 - The Union Cabinet has accorded ‘in-principle’ approval for leasing out six airports of the Airport Authority of India (AAI), including the Lokapriya Gopinath Bordoloi International (LGBI) airport in Guwahati, for operation, management and development under public private partnership (PPP) mode through the Public Private Partnership Appraisal Committee (PPPAC).
Union Law and Justice Minister Ravi Shankar Prasad briefing newsmen after the Cabinet meeting here today said that the increase in domestic and international air travel in India, combined with congestion at most airports, and the strong traffic growth at the five airports, which were privatised 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 having more than 3-4 million passenger capacity. The airport sector may provide an immediate opportunity to attract foreign direct investment (FDI) by adoption of a PPP approach.
Therefore, it has been decided to lease out six AAI airports in Ahmedabad, Jaipur, Lucknow, Guwahati, Thiruvanthapuram and Mangaluru in the first phase for development, operation and management under PPP mode. This is expected to enhance the revenue of the AAI and increase economic development in these areas in terms of job creation and related infrastructure.