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Published on 9/11/2018 11:29:08 AM | Source: Dion Global Solutions Ltd

Cabinet approves leasing out six airports through PPP model

The Union Cabinet, chaired by the Prime Minister Narendra Modi, has approved proposal for leasing out six airports of AAI viz. Ahmedabad, Jaipur, Lucknow, Guwahati, Thiruvananthapuram and Mangaluru for operation, management and development under Public Private Partnership (PPP) through Public Private Partnership Appraisal Committee (PPPAC).

Constitution of an Empowered Group of Secretaries headed by CEO, NITI Aayog with Secretary, Ministry of Civil Aviation, Secretary, Department of Economic Affairs and Secretary, Department of Expenditure to decide on any issue falling beyond the scope of PPPAC, according to a Cabinet statement. PPP in infrastructure projects brings efficiency in service delivery, expertise, enterprise and professionalism apart from harnessing the needed investments in the public sector.

The increase in domestic and international air travel in India combined with congestion at most airports, and the strong traffic growth at the 5 airports which were privatized over a decade ago has attracted the attention of several international operators and investors.