Ministry recommends capping of airports for privatisation
The Ministry of Civil Aviation has proposed capping the number of airport bundles that can be awarded to a single bidder at “two to three
The Ministry of Civil Aviation has proposed capping the number of airport bundles that can be awarded to a single bidder at “two to three bundles”, or roughly five to six airports, for the third round of airport privatisation involving 11 airports in order to prevent an “oligopoly” as the airport sector has seen which has seen the Adani Group grow from having no presence in airport operations a decade ago to becoming the country’s largest private airport operator. The recommendation was made last week in response to queries raised by government departments represented on the Public Private Partnership Appraisal Committee (PPPAC), which is reviewing the Ministry of Civil Aviation’s proposal to privatise 11 airports that was submitted in December 2025, according to a person familiar with the matter.
“The Ministry of Civil Aviation believes a cap is necessary to prevent the airport sector from evolving into a duopoly or an oligopoly,” the source said. “It is important to ensure other bidders have a fair opportunity to participate. Otherwise, it could discourage future investment in the sector,” the person added. The 11 airports proposed for privatisation have been grouped into five bundles, each comprising a mix of metro and non-metro airports to improve the commercial viability of smaller airports. The bundles are: Amritsar and Kangra; Varanasi, Kushinagar and Gaya; Bhubaneswar and Hubli; Raipur and Aurangabad; and Trichy and Tirupati. The committee also sought clarifications on a range of issues, including the the minimum capital expenditure requirements for each airport bundle to ensure that smaller airports receive adequate investment and don’t suffer from neglect.
Other aspects included financial and technical eligibility criteria for bidders, if prior airport experience is a necessary qualifying criterion, the extent of land parcels to be included in the privatisation process. If the constituent departments of the PPPAC are satisfied with the ministry’s responses, it may grant an in-principle approval. Subsequently, the Ministry of Civil Aviation is expected to issue the Request for Qualification (RFQ) for shortlisting of pre-qualified bidders. Later, the Ministry approaches the PPPAC again for approval of the Request for Proposal. In February 2019, during the second round of airport privatisation, the Adani Group emerged as the successful bidder for all six airports on offer. At the time, the conglomerate had no prior experience in operating airports.
The BriefWire