India Clears Private Operation of 11 Airports Under Five Bundles with investment of ₹8,622 crore

The Public Private Partnership Appraisal Committee (PPPAC) has given in-principle approval for the private operation, management and development of 11 Airports Authority of India (AAI) airports through five bundled concessions. The proposal is part of the government’s broader strategy to expand private participation in airport infrastructure and improve operational efficiency.

Under the proposed model, each airport bundle will be offered to a private concessionaire for a 50-year period. The government estimates that private operators could invest around ₹8,622 crore across the 11 airports.

The five proposed bundles are Amritsar–Kangra-Gaggal, Varanasi–Gaya–Kushinagar, Bhubaneswar–Hubballi, Raipur–Aurangabad and Tiruchirappalli–Tirupati. The bundling approach is designed to combine commercially stronger airports with smaller airports, creating operational and financial synergies while supporting the development of regional aviation infrastructure.

Among the proposed packages, the Bhubaneswar–Hubballi bundle is expected to attract the highest investment of around ₹2,725 crore, followed by the Varanasi–Gaya–Kushinagar bundle, estimated at approximately ₹2,467 crore.

Private operators will be responsible for managing airport terminals and city-side infrastructure, while AAI will continue to oversee air traffic control and communication, navigation and surveillance services. Cargo operations will remain under AAI’s subsidiary, AAICLAS.

The government is also considering limiting the number of bundles that can be secured by a single bidder to prevent excessive market concentration.

The proposed airport privatisation programme is expected to bring new investment, modern infrastructure, improved passenger services and greater operational efficiency to the selected airports.