AAI will continue receiving revenue share after government sells stake in Delhi & Mumbai airports, says Puri

By: |
March 16, 2021 2:30 PM

The government plans to sell its residual stake in already privatized airports of Mumbai, Delhi, Bengaluru and Hyderabad as part of the ambitious asset monetization pipeline, of Rs 2.5 lakh crore, identified to raise additional resources.

AAI, airportThe Mumbai airport and the Delhi airport are on a 60-year lease.

The Airports Authority of India (AAI) will continue to receive revenue share after the government sells its stake in Delhi and Mumbai airports, said Civil Aviation Minister Hardeep Singh Puri. He said that the Mumbai airport and the Delhi airport are on a 60-year lease. After the lease period, these two airports and the six other airports will be back with AAI. So, nothing is being ‘Sold Out’, the minister said on Twitter. Congress leader Rahul Gandhi attacked the Modi government on Monday over reports that the centre eyes to sell its residual stake in the airports of Mumbai, Delhi, Bengaluru and Hyderabad that are already privatized, according to a PTI report.

Some sources were quoted in the report saying that the government plans to sell its residual stake in already privatized airports of Mumbai, Delhi, Bengaluru and Hyderabad as part of the ambitious asset monetization pipeline, of Rs 2.5 lakh crore, identified to raise additional resources. The Union Minister mentioned that the Mumbai airport shares 39%, while the Delhi airport shares 46% of its gross revenue with the government. Till 31 December 2020, these two airports have generated Rs 29,000 crore. Even after the stake sale in Delhi and Mumbai airports, the AAI will continue to receive this share which will be utilized to develop aviation infrastructure, the minister said.

According to Puri, privatization is a means of raising resources in order to fulfill the citizens’ aspirations without imposing new taxes. The four airports- Delhi, Mumbai, Bengaluru and Hyderabad airports, about which concern is being raised were privatized or constructed during the regime of Congress, he further said. The Modi government has the target of developing 100 more airports in Tier 2 and Tier 3 cities, the Union Minister mentioned. In last seven years, routes connecting 56 unserved and underserved airports across the country including five heliports as well as two water aerodromes have been made operational, he added.

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