Current Status of Airport Privatization in India

100% Foreign Direct Investment (FDI) is permitted for Greenfield airport projects under the automatic route. Up to 74%-100% in brownfield airport projects. Up to 49% FDI is permitted in domestic scheduled passenger airlines under the automatic route. 100% permitted for NRIs. Up to 49% FDI under the automatic route is permitted in Non-Scheduled Air Transport Service. FDI above 49% and up to 74% is permitted under Government approval route. 100% FDI permitted for NRIs.

Airport Privatization

The UPA government had contemplated to privatize the airports in India with a view to enhance the airport infrastructure. At present, four out of six metro airports viz. New Delhi, Mumbai, Hyderabad and Bangalore are run by private operators. The UPA government wanted more airports to be privatized, despite of resistance from airlines. That government had floated a global tender in 2013 to give management contract to private firms for six airports in Chennai, Kolkata, Ahmedabad, Jaipur, Lucknow and Guwahati. However, this did not happen mainly because of expensive upgrades. Further, the private parties were more interested in acquiring the airport lands and play in real estate segment instead of civil aviation.

The NDA Government had invited bids in January 2015 to develop four air ports viz. Chennai, Kolkata, Ahmedabad and Jaipur in public-private partnerships (PPP). But even after extending its deadline for several times, not many showed keen interest. Thus, the government has now scrapped the project.

You may read the background of Airport Privatization at GKToday here.