The Swami Vivekananda Airport in Raipur could soon come under private operation as the Centre prepares to offer 11 airports to private players under a Public-Private Partnership (PPP) model for a concession period of up to 50 years.
The proposal has received in-principle approval from the Public-Private Partnership Appraisal Committee (PPPAC). Under the proposed model, the 11 airports will be divided into five groups, with larger airports being clubbed with smaller or mid-sized airports. A single private operator would be responsible for the operation and development of airports within each group.
The government expects the arrangement to attract private investment while improving airport infrastructure, operational efficiency and passenger facilities.
Raipur and Aurangabad in One Group
Under the proposed grouping, Raipur and Aurangabad airports have been placed together. The other proposed groups are Amritsar-Kangra Gaggal, Varanasi-Gaya-Kushinagar, Bhubaneswar-Hubballi and Tiruchirappalli-Tirupati.
The grouping model is intended to make the smaller and mid-sized airports more attractive to private operators by combining them with airports that have stronger passenger traffic and revenue potential.
₹8,622 Crore Investment Estimated
Private investment of around ₹8,622 crore is estimated across the development and operation of the 11 airports under the proposed PPP model. The Raipur-Aurangabad group is also expected to attract private investment as part of the arrangement.
The government has also proposed limiting the number of groups that can be awarded to a single bidder. The provision is aimed at preventing excessive concentration of airport operations with one company and reducing risks associated with high levels of debt.
Provision for AAI Employees
The proposal also includes provisions concerning existing employees of the Airports Authority of India (AAI).
According to the plan, the private operator would initially have to operate the airport in coordination with AAI for one year. After that transition period, the operator would be required to retain at least 60% of AAI employees for a minimum period of three years, as proposed.
The provision is intended to ensure a smoother transition from public to private operation and provide continuity for existing airport staff.
Airports Selected Through Data-Based Process
The 11 airports were selected following a phased assessment by AAI. Initially, 12 major airports were evaluated on parameters including passenger traffic, availability of land, revenue potential and financial viability.
The authorities subsequently assessed 136 smaller airports to determine how they could be paired with larger airports under the PPP model.
Based on this assessment, 11 airports have been shortlisted for the current phase of the proposed PPP programme.
If implemented, the plan would mark a significant change in the operational structure of Raipur's airport, with private participation expected to bring investment and potentially expand infrastructure and passenger services.
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