October 27, 2021

The World Live Breaking News Coverage & Updates IN ENGLISH

The World Live Breaking News Coverage & Updates IN ENGLISH

Asset monetisation: Govt to exit Hyderabad & Bengaluru JV airports first

2 min read
Asset monetisation: Govt to exit Hyderabad & Bengaluru JV airports first
Share This :
Asset monetisation: Govt to exit Hyderabad & Bengaluru JV airports first
Asset monetisation: Govt to exit Hyderabad & Bengaluru JV airports first

NEW DELHI: The Airports Authority of India (AAI) will soon start exiting the joint venture (JV) airports with the government deciding to divest its stake in them.
AAI has 26% stake each in Delhi and Mumbai JV airports and 13% each in Hyderabad and Bengaluru.
Sources say the aviation ministry has moved a Cabinet note, seeking the nod to divest AAI’s stake and the process will start with Bengaluru and Hyderabad first.
In the second phase, Mumbai and Delhi may follow.
The AAI Board had earlier this month cleared a plan to privatise 13 more airports by clubbing seven small airports with six big ones which are going to be bid out for running PPP way.
The pairs are: Varanasi with Kushinagar and Gaya; Amritsar with Kangra; Bhubaneswar with Tirupati; Raipur with Aurangabad; Indore with Jabalpur and Trichy with Hubli.
“Cabinet note for seeking approval for this is in advanced stages of finalisation,” say sources.
According to the National Asset Monetisation Pipeline prepared by the Niti Aayog recently, the government aims to raise Rs 20,782 crore through aviation assets in FY 22-25 by privatising 25 AAI airports and selling AAIs stake in JV airports.
Of this total amount, “Rs 10,000 crore of monetisation value has been tentatively considered on account of divestment of AAI stake in private JV airports. The same has been phased out equally over FY22 and FY23… actual realisation from AAI stake sale will depend on multiple factors such as transaction timing, market conditions, investor appetite and transaction terms…. during FY22-25, monetisation value of Rs 10,782 crore has been considered on account of estimated capex towards identified airports,” the Niti Aayog document says.
The total airport assets for monetisation account for about 18% of the AAI’s total airport assets. Since scale is important for investor interest, airports having annual traffic over 4 lakh passengers in FY 2019 and 2020 have been considered.
This is the first time that smaller airports are being clubbed with bigger ones while opting for the PPP mode in which on revenue share model a private player develops and expands airports while their ownership remains with the government.
The airpots being developed and run PPP way so far include those at Hyderabad, Bengaluru, Delhi, Mumbai, Kochi, Ahmedabad, Lucknow and Mangaluru. The Adani Group will soon take over Jaipur, Guwahati and Thiruvananthapuram airports and also build Navi Mumbai Airport.
All these airports were privatised on a standalone bases. Only the promoter of Mumbai Airport gets rights to build Navi Mumbai as Mumbai International Airport Ltd has won that bid.

Share This :
Copyright © All rights reserved. | Newsphere by AF themes.