NEW DELHI: Government plans to sell residual stake in already privatized Delhi, Mumbai, Bengaluru and Hyderabad airports for ambitious Rs 2.5 lakh crore asset monetization pipeline identified to mobilize additional resources, sources said.
Sale of the remaining Airports Authority of India (AAI) stake in the four airports, as 13 more airports were identified for privatization in fiscal year 2021-2022, said two people familiar with the deliberations of the Committee of Authorized Secretaries last month.
The Civil Aviation Ministry will obtain the necessary approvals for the divestiture of IAA’s stake in the respective joint ventures operating Delhi, Mumbai, Bengaluru and Hyderabad airports, they said, adding that the matter would likely be referred to Cabinet. for approval in the next few days. .
For the 13 AAI airports identified for privatization, the possibility of clubbing profitable and unprofitable airports will be explored to create more attractive packages, sources said.
During the first cycle of privatization of airports within the framework of the Narendra Modi government, the Adani group signed contracts for six airports – Lucknow, Ahmedabad, Jaipur, Mangaluru, Thiruvananthapuram and Guwahati – last year.
The IAA, which reports to the Ministry of Civil Aviation, owns and operates more than 100 airports across the country.
While at Bombay International Airport, the Adani Group owns 74 percent of the shares, the remaining 26 percent is with AAI.
At Delhi International Airport, GMR Group owns 54 percent, the Airports Authority of India owns 26 percent, while Fraport AG and Eraman Malaysia each hold 10 percent.
AAI with the government of Andhra Pradesh owns 26 percent in Hyderabad International Airport Ltd. It holds a similar stake in Bangalore International Airport with the government of Karnataka.
Minister of Finances Nirmala Sitharaman in the 2021-2022 budget speech, he said that monetizing operating public infrastructure assets was a very important financing option for building new infrastructure.
A nationwide pipeline to monetize potential brownfield infrastructure assets will be launched and an asset monetization dashboard will also be created to track progress and provide visibility to investors, she said.
Prime Minister Narendra Modi said last month that the government is targeting the monetization of 100 assets such as oil and gas pipelines, which may attract a huge investment crore of Rs 2.5 lakh.
The government is targeting Rs 1.75 lakh crore from the proceeds of the divestment in the next fiscal year starting April 1.