Management contract, not outright privatisation, for AAI airports

The civil aviation ministry has dropped its plan to privatise six Airport Authority of India (AAI) airports on a long term lease basis. Instead the government wants to appoint  private companies to run these airports on a management contract on a revenue share basis.

“We are going in for a management contract. A request for a proposal is being prepared,” said Civil Aviation Minister Ajit Singh.

The ministry has been planning to develop six AAI-run airports — Chennai, Kolkata, Ahmedabad, Lucknow, Jaipur and Guwahati – on a public private partnership (PPP) basis. Last month, an inter-ministerial group gave its nod to develop  Chennai and Kolkata airports on the PPP model on the lines of Mumbai and Delhi airports. The Planning Commission too has been in favour of the PPP model of development for AAI airports on a long-term lease basis.

Full report here Business Standard 


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