Cabinet approves proposal to lease out Jaipur, Guwahati and Thiruvananthapuram airports for 50 years

The proposal for leasing out three airports i.e. Jaipur, Guwahati, and Thiruvananthapuram through the PPP model for 50 years has been approved by the Union Cabinet.

Key highlights

Adani Enterprises Limited became the highest bidder for the project. This is not a case of permanent selling of airports. The Airport Authority of India still has ownership of those three airports.

In 2019 Adani enterprise took the leasing of other three airports from AAI. So it will now have a total of six airports i.e. Ahmedabad, Mangaluru, Lucknow, Jaipur, Guwahati, and Thiruvananthapuram.

What is the PPP model?

A public-private partnership (PPP) model is an understanding between two or more public and private sectors. It may be called a semi privatization arrangement. It is considered as a highly efficient system of management with more transparency.

Airport Authority of India

AAI is a statutory body under the aegis of the Ministry of Civil Aviation which was founded in 1995. The responsibilities of AAI include creating, upgrading, maintaining, and managing civil aviation infrastructure in India.

Month: Current Affairs - August, 2020