Why are rail, logistics, road, and shipping players bidding for 11 airports for privatisation?
Government plans to privatise 11 airports; bundling of a mix of bigger and smaller airports for bidding proposed for the first time
- Aug 26, 2026,
- Updated Aug 26, 2026 12:06 PM IST
Airport operations are just one of the various revenue streams for the airport operators and involve different infrastructure developments for returns on investment. To let multiple players bid for these 11 airports, the Ministry of Civil Aviation has said that eligible technical experience would not be restricted exclusively to the aviation sector.
The ministry, in its response to the Public Private Partnership Appraisal Committee (PPPAC) on the privatisation proposal for these airports, said that considering the nature and breadth of the concessionaire's obligations under the instant proposal, it is proposed to permit participation by bidders with relevant cross-sectoral infrastructure experience. There are plans to invest Rs 8600 crore in these projects.
“Accordingly, eligible technical experience would not be restricted exclusively to the aviation sector and would be assessed with reference to the infrastructure sub-sectors included in the Harmonised Master List of Infrastructure,” it said. This allows infrastructure players from across sectors to participate in the bid without any technical experience in the aviation sector.
Under the instant proposal, the Concessionaire would be responsible for the operation, management and development of the airports, including passenger terminals and city-side infrastructure comprising buildings, boundary walls, plant and equipment, furniture, vehicles, office appliances and computer software.
Revenue push
The projects also allow for the city-side development as land is proposed to be made available to the concessionaires. To enhance the financial viability of the respective airport bundles, the ministry shall undertake a market sounding exercise wherein outreach to various infrastructure players will be carried out.
“Bundling is being proposed for the first time for which market reaction will be assessed and suitably incorporated in the proposal which will be submitted for final recommendation of PPPAC,” it said.
The ministry said while learnings are being derived from the previous PPP transaction, a fresh market sounding exercise is warranted in the present case.
“The feedback of the private players on the proposal for bundling of airports will be reviewed by Airports Authority of India, based on which necessary modifications to the proposal will be considered. MoCA would fast-track the process for submission of the proposal seeking final recommendation by the PPPAC,” it said.
Airport operations are just one of the various revenue streams for the airport operators and involve different infrastructure developments for returns on investment. To let multiple players bid for these 11 airports, the Ministry of Civil Aviation has said that eligible technical experience would not be restricted exclusively to the aviation sector.
The ministry, in its response to the Public Private Partnership Appraisal Committee (PPPAC) on the privatisation proposal for these airports, said that considering the nature and breadth of the concessionaire's obligations under the instant proposal, it is proposed to permit participation by bidders with relevant cross-sectoral infrastructure experience. There are plans to invest Rs 8600 crore in these projects.
“Accordingly, eligible technical experience would not be restricted exclusively to the aviation sector and would be assessed with reference to the infrastructure sub-sectors included in the Harmonised Master List of Infrastructure,” it said. This allows infrastructure players from across sectors to participate in the bid without any technical experience in the aviation sector.
Under the instant proposal, the Concessionaire would be responsible for the operation, management and development of the airports, including passenger terminals and city-side infrastructure comprising buildings, boundary walls, plant and equipment, furniture, vehicles, office appliances and computer software.
Revenue push
The projects also allow for the city-side development as land is proposed to be made available to the concessionaires. To enhance the financial viability of the respective airport bundles, the ministry shall undertake a market sounding exercise wherein outreach to various infrastructure players will be carried out.
“Bundling is being proposed for the first time for which market reaction will be assessed and suitably incorporated in the proposal which will be submitted for final recommendation of PPPAC,” it said.
The ministry said while learnings are being derived from the previous PPP transaction, a fresh market sounding exercise is warranted in the present case.
“The feedback of the private players on the proposal for bundling of airports will be reviewed by Airports Authority of India, based on which necessary modifications to the proposal will be considered. MoCA would fast-track the process for submission of the proposal seeking final recommendation by the PPPAC,” it said.