The federal government is contemplating permitting personal airport operators to construct procuring complexes, convention centres, and business places of work round airports.
This improvement comes amid privatisation plans, with about 11 airports in tier II cities like Varanasi and Bhubaneswar being supplied to non-public operators.(Representational Picture/Unsplash)
That is a part of the civil aviation ministry’s consultations to amend the Airports Authority of India (AAI) Act, 1994, based on an Financial Instances report.
HT.com can’t independently confirm the authenticity of the knowledge contained within the report.
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This improvement comes amid privatisation plans, with about 11 airports in tier II cities like Varanasi and Bhubaneswar being supplied to non-public operators, based on the report.
These privatisation plans are aimed to be accomplished by the top of the subsequent monetary yr.
As of now, Chapter 3, Part 12 of the AAI Act says that airport operators can open and keep accommodations, eating places, and restrooms at or close to the airports, and set up warehouses, and cargo complexes for items storage or processing, however cannot open procuring and convention centres, business places of work, business or multi-use complexes, and coaching amenities.
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“Many of these airports are in proximity to the city and have excess land which is valuable for development,” the report quoted Siddharth Kapur, a veteran airport govt with stints at GMR and Adani airports as saying. This step may create a vibrant aerocity improvement and enhance the bid values of airports throughout privatisation,”
This additionally comes as the federal government plans to monetize 25 airports over 4 years to fetch a focused ₹20,782 crore, as per the asset monetisation plan of Niti Aayog.
This additionally marks the second governmental try to amend the AAI act.
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The primary try resulted in a 2017 authorized problem from the GMR Group-owned Delhi Worldwide Airport (DIAL).
It’s because the modification was restricted to present public-private partnership property, which ended up barring Delhi and Mumbai airports from getting related flexibility in land use, based on the report.