This will include operation, management as well as development of these airports and would be done through Public Private Partnership Appraisal Committee (PPPAC). The Cabinet said that the move is expected to enhance the revenue to the Airports Authority of India and increased economic development in these areas in terms of creation of jobs and related infrastructure. Here are top things to know about leasing out these airports through PPP model:
- In airport infrastructure projects, PPP brings efficiency in service delivery, expertise, enterprise as well as professionalism other than harnessing the needed investments in the public sector.
- With PPP model, many airports have been provided with world-class infrastructure. Moreover, the PPP has also contributed to the delivery of efficient and timely services to air passengers. At present, the Indian airports that are being managed under PPP include Mumbai, Delhi, Hyderabad, Bangalore and Cochin airports. Interestingly, the above-mentioned airports have been ranked among the top 5 in their respective categories by the Airports Council International in terms of Airport Service Quality.
- Other than creating world-class airports, the PPP model has also helped the Airports Authority of India in enhancing its revenues as well as focusing on airports development and boosting air navigation infrastructure across the nation.
- According to the Cabinet, the airport sector is the top contender among infrastructure sectors in terms of international interest. The International investors and operators prefer brownfield airport expansion, having more than 3-4 million passenger capacity. Therefore, by adoption of PPP model, the airport sector may provide an immediate opportunity to attract foreign direct investment, the Cabinet said.
- Meanwhile, a statement issued by the Cabinet said that any issue that is beyond the scope of PPPAC would be dealt by an empowered group of secretaries, which would be headed by the CEO of NITI Aayog. Moreover, Secretaries of Civil Aviation Ministry, Department of Expenditure and Department of Economic Affairs would also be a part of the group, the statement said.