Govt sweetens deal for private developers as it pushes for 200 new airports

For airport O&M projects, private players will not make any capital investments

To attract more private players in operating Indian airport projects, the government has made a policy change for private parties to participate in projects without making capital investment in them.

Instead, the government-owned airport operator, the Airports Authority of India (AAI), will make the investment and the private player will share revenue with the AAI.

The decision is understood to have been taken after a high-level meeting between the chairman of the AAI and the Prime Minister’s Office after private players were reluctant to participate in the bidding process for the operation and maintenance (O&M) of Ahmedabad and Jaipur airports.