Assembly Elections 2026: Will Kolkata, Chennai airport privatisation be back on the table?

Kolkata and Chennai airports run by the Airports Authority of India (AAI) have been on the list of airports to be privatised since 2012, but faced stiff opposition from political parties and unions, especially in West Bengal.

The plans to privatise them could soon be back on the table with the BJP’s massive win in Bengal and the change of government in Tamil Nadu. The government is working on the framework for the privatisation of 11 airports.

Netaji Subhas Chandra Bose International Airport, Kolkata and Chennai International Airport have been in the initial list of six airports to be privatised in 2012 under the Congress-led UPA regime.

The BJP government continued with the plans when it came to power in the centre in May 2014. In December 2024, the AAI invited the Request For Qualification (RFQ) from domestic and overseas private firms to hand over the management, operation, and development of the four airports – Kolkata, Chennai, Ahmedabad and Jaipur. However, there has been no final decision.  

Currently, 14 airports are operated under the Public Private Partnership (PPP). As per the National Monetisation Pipeline (NMP), 25 AAI airports have been earmarked for leasing over the years 2022 to 2025.

What is the status now?

The privatisations of the second batch of airports announced by AAI in 2023 reignited the pending Kolkata and Chennai airports privatisation. There were several reports that the government wants to include these metro airports in the list. But the government has not yet decided.

With the change of regime in Bengal and TN, there could be renewed efforts to bring the proposal back on table. BJP has won a massive majority in Bengal, actor-turned political Vijay’s TVK has emerged as the largest party in TN.  

In February 2025, Civil Aviation Minister Ram Mahan Naidu denied reports that Chennai airport would be privatised. However, it was seen more as an election tone, keeping in mind the sensitivity of the issue in the state.  

Left trade union CITU had opposed the private management of Kolkata and Chennai airports, saying it would allow private players to "make undue profit out of public resources."

Performance of both airports

Both the AAI-run airports are among the top 10 busiest in India. Among the metro airports, Chennai airport saw the second-highest passenger growth during April-Nov 2025, better than most of the private-run airports, which saw negative growth. The highest growth was at Hyderabad airport.

AAI has undertaken the expansion and modernization of Chennai Airport in two phases at a total cost of Rs. 2467 crore. Under Phase I, a New Integrated Terminal Building has been constructed, increasing the airport’s passenger handling capacity from 23 Million Passengers Per Annum (MPPA) to 30 MPPA. The terminal has been operational since 08.07.2023, and all the passenger facilities are accessible to the passengers. Phase II involves the development of Terminal-3, further enhancing the airport’s capacity to 35 MPPA. It is set to open in December 2026.

Kolkata airport celebrated its centenary in 2024 and is set for a major expansion to demolish the old domestic terminal and construct a new international facility.

Criteria for airport privatisation?

The government’s stance was that privatisation helps in improving the overall efficiency and modernisation of the aviation sector and mobilises private capital to invest in the sector, as some of these airports are making losses. It also reduces the financial burden on the public exchequer.

The government, for the first time, has done bundling of airports – metro and non-metro for the current airports that will come up for privatisation to ensure smaller airports are also developed.