The government plans to sell the remaining stake in Delhi, Mumbai, Bangalore and Hyderabad airports. It is part of its ambitious Rs 2.5 lakh crore asset monetization, which has been identified to raise additional resources. The Airport Authority of India (AAI) has been identified for sale of the remaining stake in four airports and 13 airports for privatization in FY 2021-22. This information was given by two people who had information about discussions in the Empowered Committee of Secretaries last month.
Cabinet will be approved
The Ministry of Civil Aviation will take necessary approvals for disinvestment of AAI’s equity stake in the respective joint ventures. The matter is expected to be placed before the cabinet for approval in the next few days. For the 13 airports identified for privatization, the possibility of bringing together professional and non-profitable airports will be explored, so that more attractive packages can be created.
Under the Narendra Modi government, in the first round of privatization of airports, the Adani Group won contracts for six airports last year, including Lucknow, Ahmedabad, Jaipur, Mangaluru, Thiruvananthapuram and Guwahati. AAI, which works under the Ministry of Civil Aviation, owns and manages more than 100 airports across the country.
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Adani Group’s stake in Mumbai International Airport
While the Adani Group holds 74% stake in Mumbai International Airport, AAI holds the remaining 26% stake. At Delhi International Airport, the GMR Group holds 54 per cent, the Airports Authority of India has 26 per cent, while Fraport AG and Eraman Malaysia each hold 10 per cent.
AAI holds a 26 per cent stake in Hyderabad International Airport Limited with the Government of Andhra Pradesh. It also holds an equal stake in the Bengaluru International Airport with the Government of Karnataka. Finance Minister Nirmala Sitharaman had said in the 2021-22 budget speech that monetizing operating public infrastructure assets is a very important financing option for the creation of new infrastructure.
(Input: PTI)