The central government is preparing for the next phase of airport privatisation to boost infrastructure development and attract investment in India’s aviation sector. The plan involves handing over the management of 11 airports, including those in Varanasi, Amritsar, Raipur, Bhubaneswar and Tiruchirappalli, to private operators.

The bidding process is expected to begin by December, with the government aiming to finalise the deals by the end of the 2026-27 financial year.

Five Airport Clusters Planned Under New Model

For the first time, the Airports Authority of India (AAI) plans to introduce a bundled bidding model by grouping the airports into five separate clusters instead of offering each airport individually.

Under the proposed arrangement, smaller and regional airports will be grouped with larger, commercially viable airports and offered to private operators under 50-year lease agreements.

The objective is to ensure that private companies do not focus only on profitable airports in major cities but also invest in the development and operation of smaller airports, including those serving regional destinations and pilgrimage centres.

Bid Limits to Prevent Monopoly

The government is also planning to introduce restrictions on the number of airport clusters a single bidder can acquire. The proposed safeguards aim to prevent market dominance by a few companies and maintain healthy competition in the aviation sector.

The Adani Group is currently India’s largest private airport operator, while the GMR Group operates major airports, including those in Delhi and Hyderabad.

The proposed bidding limits are intended to encourage wider participation and prevent excessive concentration of airport assets among a small number of operators.

Roadshows Planned in Mumbai, Dubai and Singapore

To attract investors and explain the new bidding framework, the government plans to organise promotional roadshows in Mumbai, Dubai and Singapore.

These events will provide potential investors with details of the proposed airport clusters and offer an opportunity to share feedback on the privatisation process.

The government hopes the initiative will attract participation from both domestic and international investors, including global investment funds.

Sovereign Wealth Funds and Indian Companies Show Interest

Apart from established airport operators such as the Adani and GMR groups, the government expects new players to participate in the bidding process.

Sovereign wealth funds from West Asia and Indian industrial conglomerates such as JSW are among the investors reportedly showing interest in airport acquisitions.

The proposed privatisation drive is aimed at bringing in fresh capital, improving operational efficiency and supporting the long-term expansion of India’s aviation infrastructure.