Centre plans to cap airports awarded to bidder in next privatisation round
The Ministry of Civil Aviation (MoCA) is planning to limit the number of airport bundles that can be awarded to a single bidder in the upcoming round of airport privatisation to address concerns over market concentration and potential over-leveraging, as per a submission to the Public Private Partnership Appraisal Committee (PPPAC).
The proposal, which involves clubbing 11 airports into five bundles for a 50-year period, received in-principle approval from the PPPAC. The move aims to mitigate risks associated with a dominant private sector presence in the aviation sector. The Adani group currently operates eight airports, while GMR manages six, raising concerns about the oligopolistic nature of the sector.
The new rule will allow bidders with relevant experience in cross-sectoral infrastructure to participate, expanding the pool of potential bidders.
Written by urgent.news from The Indian Express's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
