The Ministry recommends capping airports for privatization

The 11 airports proposed for privatization have been grouped into five packages, each containing a mix of metro and non-metro airports, to improve the commercial viability of smaller airports. File image for representation only. | Photo credit: Getty Images/iStockphoto

The civil aviation ministry has proposed limiting the number of airport packages that can be awarded to a single bidder to “two to three packages”, or roughly five to six airports, for the third round of airport privatization involving 11 airports to avoid an “oligopoly” as the airport sector, which saw the Adani Group grow from having no presence in airport operations to the largest private airport operator a decade ago.

The recommendation was made last week in response to queries from government departments represented on the Public-Private Partnership Appraisal Committee (PPPAC), which is reviewing the Civil Aviation Ministry’s proposal to privatize 11 airports submitted in December 2025, according to a person familiar with the matter.

“The civil aviation ministry believes that the restriction is necessary to prevent the airport sector from developing into a duopoly or an oligopoly,” the source said.

“It is important to ensure that other bidders have a fair chance to participate. Otherwise, it could discourage future investment in the sector,” the person added.

The 11 airports proposed for privatization have been grouped into five packages, each containing a mix of metro and non-metro airports, to improve the commercial viability of smaller airports. The packages are: Amritsar and Kangra; Varanasi, Kushinagar and Gaya; Bhubaneswar and Hubli; Raipur and Aurangabad; and Trichy and Tirupati.

The committee also sought to clarify a number of issues, including minimum capital expenditure requirements for each airport package, to ensure that smaller airports receive adequate investment and do not suffer neglect. Other aspects included the financial and technical eligibility criteria for bidders, if previous airport experience is a necessary qualification criterion, the extent of land to be included in the privatization process.

If the individual PPPAC units are satisfied with the Ministry’s responses, it can grant approval in principle. Subsequently, the Ministry of Civil Aviation is expected to issue a Request for Qualification (RFQ) to short-list pre-qualified bidders. Later, the Department will again approach the PPPAC for approval of the RFP.

In February 2019, during the second round of airport privatization, the Adani Group emerged as the successful bidder for all six airports on offer. At the time, the conglomerate had no previous experience in operating airports.

In July 2019, The Hindu reported that the PPPAC had swept aside key recommendations by the Ministry of Economy and NITI Aayog to improve the selection criteria for bidders, which include limiting the maximum number of airports that can be allotted to one player to two, as well as previous experience in airport operations and management.

Later, Adani Group also acquired GVK’s majority stake in Mumbai and Navi Mumbai Airport, expanding its airport portfolio to eight facilities. Together, these airports handle approximately 78 million passengers annually, accounting for nearly 25% of India’s air traffic.

Published – 10 Jun 2026 22:32 IST