Last Updated: March 18, 2021, 1030 hrs IST
Companies looking to participate in the next round of airport privatization to take place in the next fiscal year, will have to bid for both loss-making airports along with profit-making ones.
The government has decided to bundle seven airports that make losses with six profit-making airports. According to the list released, the profit-making airports include Trichy, Bhubaneswar, Raipur, Amritsar and Indore. While the loss-making airports list include Salem, Jharsuguda, Jalgaon, Jabalpur and Kangda.
As stated by the government, “Required approvals are in place and the bidding for these projects is likely to begin during the next fiscal,” The government is of the view that “A loss-making airport would not otherwise have found takers but when it is combined with a profit-making airport in its vicinity there are chances of these airports being bid out too.”
Finance Minister Nirmala Sitharaman, during the presentation of Budget 2021-22, had suggested that the airports in the tier 2 and 3 towns and cities would be privatized in the this round of privatization. She had further added that the airports would be monetized for operations and management concessions.
It is of the view that, the terms of privatization are likely to be similar to that of the six airports that were put up for bidding in 2019. The Adani Group won all six airports that were— Ahmedabad, Lucknow, Mangalore, Jaipur, Guwahati and Thiruvananthapuram.