AAI to develop Chennai, Kolkata airports on PPP model
AAI chairman VP Agarwal said that bot, Chennai and Kolkata airports will be developed under public private partnership model just like Mumbai, Delhi and Hyderabad airports
The Airports Authority of India (AAI) plans to give away Chennai and Kolkata airports for privatisation after the government allowed it to do so. AAI chairman VP Agarwal said that both airports will be developed under public private partnership model just like Mumbai, Delhi and Hyderabad airports
Agarwal said that currently both airports are financially viable. The authority has already worked on draft documentation for selection of consultants, he said.
Agarwal also said that major shareholding for these airports will be with private operators and it is yet to be decided about AAI’s share of ownership once these airports are up for bids. Experts say that the AAI will be a bigger beneficiary as it will receive a significant chunk of the revenue portion from private developers who take up these projects. Currently, it is received a decent pie of revenue share from privately-owned metro airports in which it has around 26 percent stake each.
AAI has always maintained that whatever revenue it receives will be utilized to provide connectivity in smaller regions where private investors may not be interested in developing airports.
Meanwhile, the AAI is mandated to build around 51 airports including eight greenfield projects which are also likely to be developed via PPP model
The AAI chief also confirmed that airports in difficult regions like the North East will be supported by the government. “Financial position of AAI is strong enough to fund projects,” added Agarwal.