Government Sets Rs27,500 Crore Aviation Monetisation Target

Eleven Airports Lined Up Under NMP 2.0 Leasing Plan

The Union government has set a monetisation target of ₹27,500 crore for the civil aviation sector under the National Monetisation Pipeline (NMP) 2.0 for FY26–FY30. The strategy aims to attract private investment into operational airport assets while preserving public ownership of core infrastructure.

Airports Identified for Monetisation

Eleven airports have been shortlisted for leasing: Varanasi, Bhubaneswar, Amritsar, Indore, Raipur, Trichy, Calicut, Coimbatore, Ranchi, Jodhpur and Gaya. The proposal is under appraisal by the Public Private Partnership Appraisal Committee (PPPAC), which evaluates viability, risk allocation and concession structure.

These airports will be offered under structured Public Private Partnership (PPP) frameworks rather than through outright privatisation.

Monetisation Framework and Model

Airport monetisation under NMP 2.0 relies on long-term concession agreements, generally spanning 20–50 years. Asset ownership remains with the government or the Airports Authority of India (AAI), and the facilities revert to the public authority at the end of the concession term.

The primary mechanism is the Operation, Maintenance and Development Agreement (OMDA). Under this model, private concessionaires assume responsibility for operations, maintenance, capacity expansion and passenger service upgrades. In return, operators provide upfront concession fees and/or revenue sharing.

Valuation and Revenue Composition

The projected ₹27,500 crore monetisation value includes upfront payments, discounted future revenue shares payable to public authorities and committed private capital expenditure. After accounting for asset depreciation, the effective monetisation value is estimated at approximately ₹22,500 crore.

Revenue flows are expected primarily during FY26–FY30, although certain concession-linked payments may extend beyond FY30.

Expansion Compared to Earlier Cycle

Under the previous NMP (FY22–FY25), the aviation sector carried a target of ₹13,500 crore. The revised target signals a substantial scaling-up aligned with infrastructure financing and fiscal optimisation objectives.

Important Facts for Exams

• National Monetisation Pipeline unlocks value from brownfield assets.

• Airport leasing uses PPP concessions, not outright sale.

• OMDA is a standard airport monetisation model.

• PPPAC appraises PPP projects before approval.