Aviation in India is about to get a big boost!
Union Cabinet this week approved the privatisation of airports in Ahmedabad, Jaipur, Lucknow, Guwahati, Thiruvananthapuram and Mangaluru.
The airports will be operated under a Public-Private Partnership(PPP). This will include operation, management as well as the development of these airports and would be done through Public Private Partnership Appraisal Committee (PPPAC).
The Cabinet has said that the move is expected to enhance the revenue to the Airports Authority of India and increased economic development in these areas in terms of creation of jobs and related infrastructure.
Here’s why the PPP model will benefit us in the future:
- In airport infrastructure projects, PPP brings efficiency in service delivery as well as professionalism
- With PPP model, many airports have been provided with world-class infrastructure. Moreover, the PPP has also contributed to the delivery of efficient and timely services to air passengers.
- Other than creating world-class airports, the PPP model has also helped the Airports Authority of India in enhancing its revenues as well as focusing on airports development and boosting air navigation infrastructure across the nation.
At present, the Indian airports that are being managed under PPP include Mumbai, Delhi, Hyderabad, Bangalore and Cochin airports.
Interestingly, the above-mentioned airports have been ranked among the top 5 in their respective categories by the Airports Council International in terms of Airport Service Quality.
According to the Cabinet, the airport sector is the top contender among infrastructure sectors in terms of international interest. Therefore, by adoption of PPP model, the airport sector may provide an immediate opportunity to attract foreign direct investment.