The Center has boosted the next phase of airport leasing with a ₹27,500 crore monetisation target for the civil aviation sector under the National Monetisation Pipeline (NMP) 2.0, for fiscal years 2026 to 2030. Eleven airports, including Varanasi, Bhubaneswar, and Amritsar, are identified for leasing over this period. The proposal, under review by the Public Private Partnership Appraisal Committee, retains government ownership of core assets while inviting structured private participation.
Rather than outright sales, airports will be leased under long-term concession agreements, reverting to public authority once the duration ends. The primary model is the Operation, Maintenance and Development Agreement (OMDA), with concessionaires handling operations, modernization, and paying either upfront fees or sharing revenue with the government. These Public Private Partnership (PPP) concessions are expected to last between 20 to 50 years.
In addition, strategic stake sales or equity divestments may occur through public offerings. Previously, the civil aviation sector’s monetisation target was ₹13,500 crore for FY22 to FY25. The new target of ₹27,500 crore includes concession payments, revenue shares, and private investments, with actual returns estimated at ₹22,500 crore after depreciation, benefiting airport authorities and public sector undertakings, with additional benefits projected beyond FY30.