India’s Aviation Ministry Fast-Tracks Leasing 11 More Airports Under PPP Model

The Indian government is rapidly advancing the next phase of Indian airport privatization efforts. A proposal to lease 11 Airports Authority of India (AAI) facilities has gained significant momentum. This initiative falls under the government’s ambitious National Monetisation Pipeline (NMP). The Ministry of Civil Aviation (MoCA) recently completed its internal review and approved the plan. This proposal now moves to the Public Private Partnership Appraisal Committee (PPPAC) for detailed scrutiny.

The Public-Private Partnership Model

This new phase marks the third round of airport privatization in India. The Public-Private Partnership model (PPP) is used to manage and develop these assets. The goal is to unlock underutilized public assets to fund new infrastructure projects. The government is working on a formula for the bidding process. This involves pairing a major, profitable airport with a smaller, less profitable one. The combined entity is then offered to prospective private lessees.

Minister of State for Civil Aviation Murlidhar Mohol confirmed this strategy in March 2025. He stated that five key airports are being clubbed/paired with six smaller airports.

Key Airport Pairings

The five major airports identified for leasing are Amritsar, Varanasi, Bhubaneswar, Raipur, and Tiruchirappalli. The pairing strategy aims to ensure development across all locations. According to reports, the proposed pairings include:

• Varanasi with Gaya and Kushinagar
• Bhubaneswar and Amritsar with Hubballi and Kangra
• Raipur and Tiruchirappalli with Chhatrapati Sambhajinagar (Aurangabad) and Tirupati

This bundling mechanism is designed to attract private investment for the smaller airports. The revenue generated by the major airports will support the development of the minor ones.

Context and Industry Impact

India is one of the world's fastest-growing aviation markets. The AAI airports leasing plan is a direct response to this booming demand. The NMP-II aims to monetize 25 AAI-operated airports by 2025. The revenue generated will be reinvested into the aviation sector.

Currently, 14 airports in India operate under PPP arrangements. Eight of these were leased through long-term concessions. These include major hubs like Delhi, Mumbai, Lucknow, and Ahmedabad. The six airports awarded to Adani Enterprises in a previous round were based on the highest “per passenger fee” offered.

Airlines and passengers stand to benefit from this privatization drive. Private operators typically invest heavily in modernization and expansion. This leads to better passenger experience and increased capacity. The government plans to have between 350 and 400 airports by 2047. The current infrastructure asset monetization is a critical step toward this goal. Industry giants like Adani Enterprises and GMR Group are expected to be key bidders for these 11 airports. The PPPAC will evaluate the financial and legal aspects before final approval is granted. This development is closely watched across the global commercial aviation news sector.

• The government seeks to mobilize additional resources through structured asset leasing.
• The divestment process for these 11 airports is expected to move forward quickly.
• Private sector participation is seen as essential for modernizing India’s airport infrastructure.

For more updates on global aviation policy, visit our aviation news section. The Ministry of Civil Aviation (MoCA) continues to oversee this massive infrastructure overhaul. Private companies like Adani Airports are preparing aggressive bids to expand their operational footprint.