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Airport privatisation under NMP
What it is
Transfer of operations at government-run airports to private concessionaires under the National Monetisation Pipeline, with 25 airports being pursued through PPP models
Bidders typically compete on revenue share per passenger offered to the Airports Authority
Impact on industries
- Opens a large, defined pipeline of concession opportunities to operators with airport management capability
- Private operation has historically improved capacity, service quality and non-aeronautical yield at privatised airports
- Competitive bidding on per-passenger revenue share transfers traffic risk entirely to the concessionaire
- Aggressive bids assume traffic growth that may not materialise at smaller airports, where the economics are far thinner than at metros
- Concentration is a live policy question, since a small number of groups now operate much of India's privatised airport capacity