World-class airports! Modi Cabinet approves leasing out of Jaipur, Guwahati, Thiruvananthapuram airports on PPP
World-class airports in India! Prime Minister Narendra Modi-led Union Cabinet on Wednesday approved the proposal for leasing out Jaipur, Guwahati, and Thiruvananthapuram airports. These airports are owned by the Authority of India (AAI). Union Environment Minister Prakash Javadekar said the Union cabinet has approved the proposal for leasing out Jaipur, Guwahati, Thiruvananthapuram airports through public-private partnership (PPP) model.
Earlier, Adani Enterprises had won the rights to run Chaudhary Charan Singh International Airport in Lucknow, Sardar Vallabhbhai Patel International Airport in Ahmedabad, Jaipur International Airport, Mangalore International Airport, Trivandrum International Airport in Thiruvananthapuram, and Lokpriya Gopinath Bordoloi International Airport in Guwahati through PPP model following a bidding process. Like airports in Jaipur, Guwahati, and Thiruvananthapuram, AAI manages Lucknow, Ahmedabad, and Mangaluru airports. Adani Enterprises has already signed the concessionaire agreement with AAI for airports in Lucknow, Ahmedabad, and Lucknow on February 14, 2020.
The Central government had listed out benefits behind the move to lease out airports by adopting the PPP model.
1. By adopting the PPP model, there would be efficiency, expertise, and professionalism. Apart from this, the public sector needed investments, the central government said.
2. PPP in airport infrastructure projects has so far ensured world-class infrastructure at airports, and augmentation of revenue. The quality of services to airport passengers has also improved. Mumbai, Delhi, Bengaluru, Hyderabad, and Cochin are run through this PPP model, the Modi government said.
3. Airports Council International (ACI) has been recognizing PPP airports in India as top-ranked airports in Asia and the world in terms of Airport Service Quality (ASQ), the Centre said in a statement.
4. The PPP model has helped AAI enhance revenues and utilize funds for developing and upgrading other airports across India, the Central government said.
The central government had said that the airport sector garnered interests from international operators and investors. The adoption of a PPP approach was expected to enhance the AAI’s revenue along with increasing the economic development in airports’ surrounding areas in terms of job creation and related infrastructure.