The airport is to be leased out for operation, management and development under public private partnership (PPP) mode through the Public Private Partnership Appraisal Committee (PPPAC).
Guwahati: Keeping in line with its airport privatization policy to cater to the ever-increasing passenger footfall and the staggering airport maintenance costs, the Central government has accorded ‘in-principle’ for leasing out six airports, including the Lokapriya Gopinath Bordoloi International (LGBI) Airport in Guwahati.
The airport is to be leased out for operation, management and development under the public private partnership (PPP) mode through the Public Private Partnership Appraisal Committee (PPPAC).
Addressing the media in New Delhi, Union law and justice minister Ravi Shankar Prasad reflected upon the successful privatization of five airports undertaken recently, which have seen a growth in terms of both passengers and traffic. He also emphasized on the increase in the number of international operators and investors who have expressed their desire to operate and invest in these airports.
The other five Airports Authority of India airports to be leased out are Ahmedabad, Jaipur, Lucknow, Thiruvanthapuram and Mangaluru in the first phase.
Guwahati’s LGBI Airport has witnessed an increase in footfall from 3.8 million in financial year 2017 to 4.7 million in financial year 2018, registering an overall growth of 23.2%.
Earlier, the government had adopted a policy wherein the bidder was to pay the government a fixed rental based on the revenues it felt it could generate for managing the terminals. But, the government was unable to attract even a single bidder under this model. So, now the government is now allowing operation, management and development under the PPP mode.