The Airports Authority of India (AAI) is poised to realise Rs2,500 crore by capitalising on the land of the erstwhile Rajkot airport, which has been vacated following the relocation of operations to the new greenfield airport at Hirasar.
This strategic move aims to leverage the idle land for commercial and residential development, providing a significant financial boost for the authority. The initiative to monetise the old airport land is grounded in a 2019 agreement between the AAI and the state government. This arrangement was pivotal in facilitating the financial recovery for the new Hirasar airport project, which received in-principle approval from the Union Ministry of Civil Aviation in 2017. The approval came with specific conditions, including the requirement for the AAI to monetise the land of the existing Rajkot airport to cover capital and operational expenses related to the new facility.
With the operational shift to Hirasar, the AAI is now evaluating whether to develop the land independently or through an authorised agency, in line with local municipal regulations. The state government is tasked with enabling the sale, mortgage, lease, or sublease of the land according to government guidelines. AAI is expected to undertake a comprehensive market study to devise an effective monetisation strategy and set appropriate pricing for the land and its potential developments. The role of the state government extends to approving the land’s development plans and facilitating a change in land use to accommodate a mix of residential, commercial, institutional, and industrial purposes.
The Rajkot Municipal Corporation (RMC) is responsible for approving these development plans and ensuring the provision of essential infrastructure, including roads, fire safety, sewage disposal, and water facilities. Officials in the Rajkot collectorate anticipate a proposal for the change of land use soon, highlighting the strategic advantage of the site’s location near Jamnagar Road and Airport Road. This redevelopment is expected to enhance the area’s accessibility and attractiveness for investors, contributing to the realisation of the Rs2,500 crore financial target.
The AAI’s move to monetise the old airport land underscores its commitment to leveraging asset value to support the financial sustainability of its new projects. This redevelopment not only promises substantial revenue but also aligns with broader urban development goals, transforming a legacy site into a vibrant hub for growth.
