Industry Odisha Bureau, Oct 21: The government will pitch 11 airports to global investors ahead of December bidding. Five bundles on 50-year leases are on offer, with a cap planned per bidder.
The government plans to court global investors for its next airport privatisation round. Roadshows are planned in Dubai, Singapore and Mumbai, people familiar with the matter said. Bidding for 11 airports is set to begin by December, The Economic Times reported. The aim is to close deals by the end of FY2026–27. No airport has yet been awarded.
For the first time, the Airports Authority of India (AAI) will offer airports in bundles. Smaller facilities will be paired with larger ones in five groups. Each bundle would carry a 50-year lease. A concession lets a private operator run and develop an airport for a fixed period.
Varanasi will be grouped with Gaya and Kushinagar. Amritsar is paired with Kangra, and Bhubaneswar with Hubballi. Raipur goes with Aurangabad, while Tiruchirappalli joins Tirupati.
Bundling can make smaller regional airports more attractive to bidders. Busier airports offer steadier revenue that may offset weaker traffic elsewhere. This could support regional connectivity without leaving small airports unsold.
A person familiar with the plan said the bundle format was new to bidders. Roadshows would explain how it works and gather investor feedback. The person expected this to encourage wider participation. The AAI did not respond to ET’s queries.
The government expects fresh players alongside existing operators GMR Group and Adani Group. Sovereign wealth funds from West Asia are reportedly interested. Such funds typically seek long-term, stable infrastructure assets. The JSW Group is also keen, according to people aware of the matter. Interest, however, does not mean any party has bid.
The round also brings a competition safeguard. The government plans to cap how many airports a single entity can bid for. The move reflects concerns over market concentration and monopoly risk in aviation. The report did not specify the limit. A cap could open room for new entrants, though established operators may see fewer prizes. Competition among operators can sharpen service standards for passengers.
An earlier ET report put private investment at ₹8,622 crore across the 11 airports. That figure is an estimate, not a committed sum. Such capital could fund terminal upgrades and operational improvements. Long concessions also demand patient capital and steady passenger demand.
Traffic trends will shape investor appetite. Bhubaneswar handled 310,303 passengers in August 2026, down from 386,469 a year earlier. Varanasi fell to 278,623 from 301,830, and Amritsar to 192,016 from 224,113. Bidders will weigh such dips against long-term demand over 50 years.
The round tests whether India can widen its pool of airport owners. Success will depend on drawing capital to smaller airports while keeping competition alive.
