India’s airport privatisation programme is poised to enter a new phase this year, as the government prepares to lease more Airports Authority of India-operated assets under the public-private partnership model. In a strategic move aimed at enhancing regional air connectivity while balancing commercial viability, the Centre is expected to club five larger airports with six smaller ones, making them attractive investment packages for private players.
This development signals a renewed push toward infrastructure expansion and aviation sector reform amid growing passenger volumes and regional demand. The upcoming round will likely include commercially significant airports such as Amritsar, Varanasi, Bhubaneswar, Raipur and Trichy. These are to be paired with smaller but operationally viable airports, such as Kushinagar and Kangra, which have a modest handling capacity of around 100,000 passengers per annum. The objective is to ensure that less profitable airports, especially in Tier-2 and Tier-3 cities, do not remain under-utilised but are integrated into the mainstream aviation ecosystem through cross-leveraged investment strategies. While the smaller airports are not necessarily loss-making, they face challenges in attracting investment independently due to lower passenger volumes.
This bundling mechanism echoes the government’s approach from the previous privatisation round when Adani Enterprises secured rights to operate six airports, including Ahmedabad, Lucknow, and Mangalore, for 50 years under a per-passenger fee model. This marked a departure from the earlier revenue-sharing framework that offered shorter lease periods. The success of that round and the growing role of private operators in airport management have lent credibility to the government’s model of infrastructure monetisation and sustainable transport development.
Presently, eleven airports across India are run by private entities, including the high-traffic hubs of Delhi and Mumbai, which together account for nearly half of the country’s total air passenger traffic. The Civil Aviation Ministry has stated that India plans to scale the number of operational airports from the current 159 to 350 by 2047. This long-term vision hinges on efficient public-private collaboration, especially in light of rapid urbanisation, growing disposable incomes, and rising intercity mobility demands. Cities like Chennai and Bengaluru have already initiated groundwork for secondary airports, following in the footsteps of the Delhi NCR and Mumbai Metropolitan Region, which will soon witness the launch of Noida International Airport and Navi Mumbai International Airport respectively.
As India accelerates towards becoming a major aviation hub, the challenge lies not just in building more airports but in ensuring they are sustainable, inclusive, and integrated into urban development plans. The ongoing privatisation effort must, therefore, balance investor interest with the public good, ensuring equitable access, carbon-conscious design, and long-term viability. While the upcoming bidding round holds promise, its success will ultimately depend on robust regulatory frameworks and transparency in execution.
Indian airports to be privatised under public private partnership model
