The Airports Authority of India (AAI) is preparing to invite global bids for 11 airports under a proposed privatisation framework designed to broaden investor participation while limiting market concentration in India’s airport sector.
According to media reports, the government aims to begin the bidding process by December 2026 and complete the transactions by the end of the 2026-27 financial year. International investor roadshows are expected to be held in financial centres such as Dubai and Singapore to attract infrastructure investors, sovereign wealth funds and corporate groups.
The 11 airports are proposed to be grouped into five packages, each offered under a 50-year concession agreement. The bundled approach is intended to combine larger airports with smaller regional facilities, helping revenue from busier airports support the operations and development of airports with lower passenger traffic.
11 Airports Proposed Across Five Privatisation Packages
The proposed packages cover airports across several regions of India, combining established passenger markets with regional aviation facilities.
The five proposed packages are:
- Amritsar and Kangra-Gaggal
- Varanasi, Gaya and Kushinagar
- Bhubaneswar and Hubballi
- Raipur and Aurangabad
- Tiruchirappalli and Tirupati
The proposal has received in-principle approval from the Public Private Partnership Appraisal Committee (PPPAC). Further consultations and approvals are expected before the bidding process proceeds.
New Rules Aim to Limit Market Concentration
A key feature of the proposed framework is a cap on the number of packages that an individual bidder can win. The Ministry of Civil Aviation has proposed the restriction following concerns raised by the Finance Ministry about market concentration and the financial risks associated with excessive borrowing by airport operators.
The precise limit on the number of packages awarded to a single bidder has not yet been finalised. The provision is intended to influence how the airports are distributed among prospective operators and encourage broader participation in the bidding process.
Adani Airport Holdings and GMR Airports are among India’s largest private airport operators, together accounting for a substantial share of passenger traffic. The proposed restrictions could therefore play an important role in determining the competitive landscape of the next round of airport concessions.
Global Investor Participation in Focus
The government plans to attract a wider pool of investors through international roadshows, with Dubai and Singapore among the locations being considered. Potential participants include infrastructure investment firms, sovereign wealth funds and corporate groups with relevant operating experience.
The government is also considering eligibility provisions that would allow companies with experience in other infrastructure sectors to participate, rather than limiting the bidding process to established airport operators.
The approach could widen the pool of prospective concessionaires while bringing additional investment and infrastructure expertise into airport operations and development.
Private Operators to Manage Airport Development
Under the proposed concession structure, private operators would be responsible for airport operations, management and development. Their responsibilities would include passenger terminals, city-side infrastructure and approved capital expenditure.
Concessionaires would also be required to expand airport capacity when passenger traffic or infrastructure utilisation reaches specified thresholds. These provisions are intended to link infrastructure investment to operational requirements and the growth in passenger demand.
AAI would retain responsibility for air traffic control and communication, navigation and surveillance services. Cargo operations would remain with AAI Cargo Logistics and Allied Services Company Limited.
The framework also proposes transitional arrangements for existing AAI employees as airport operations move to private concessionaires.
New Bidding Round Follows 2019 Airport Privatisation
The proposed privatisation round follows the 2019 process involving six airports: Ahmedabad, Jaipur, Lucknow, Mangaluru, Thiruvananthapuram and Guwahati. These airports were awarded to the Adani Group under 50-year concession agreements.
The upcoming round would extend private participation to 11 additional airports through a package-based approach that combines larger and smaller facilities.
The final bidding conditions, particularly the limit on the number of packages that an individual bidder can win, will be important in determining the level of competition and the distribution of airports among prospective operators. The proposed timeline envisages bids beginning by December 2026, with transactions targeted for completion by the end of the 2026-27 financial year.
