Government Proposes Leasing 26 State‑Owned Airports Under NMP 2.0

The Government of India has proposed leasing operations of 26 state‑owned airports to private players under the National Monetisation Pipeline (NMP) 2.0. The Ministry of Civil Aviation aims to implement the plan through the public‑private partnership model while retaining government ownership.

The initiative is designed to strengthen efficiency, improve facilities and generate capital for future development. The proposal also includes divesting stakes in multiple airport‑linked entities over a five‑year period.

Government Outlines Plan to Lease 26 Airports

The proposal covers 26 airports that will be handed to private operators through the Operation, Management and Development Agreement (OMDA) model. This framework allows private concessionaires to manage, operate and expand airport facilities for a contractually defined period.

The government intends to maintain ownership of the assets while allowing private entities to drive efficiency and modernisation. The identified airports will be grouped into three clusters and offered for bidding across the five‑year monetisation window.

Monetisation Target Set for Civil Aviation Sector

The total monetisation target under NMP 2.0 for the civil aviation sector stands at ₹27,500 crore for FY26 to FY30. Of this, ₹14,950 crore is expected to be raised from leasing airports operated by the Airports Authority of India through the OMDA model.

A further ₹12,550 crore is projected from divesting government stakes in a subsidiary and four joint venture airports. The monetisation strategy aims to create additional capital for infrastructure development without transferring ownership of core public assets.

Structure For Bidding and Stake Dilution

The government plans to tender the airports in three groups, beginning with an initial set of 11 airports. The process has been structured to attract both domestic and international airport operators with operational experience.

Alongside airport leasing, the Airports Authority of India’s stake in certain entities will be diluted through public offerings or private placements. These measures are intended to diversify ownership while maintaining regulatory oversight and public accountability.

Alignment With Asset Monetisation Framework Under NMP 2.0

NMP 2.0 retains the core principles of asset monetisation established under NMP 1.0. The model is based on transferring operational rights for a limited period without selling the underlying asset.

It also incorporates options such as divestment of portions of listed entities, securitisation of future cash flows and structured commercial auctions. According to the framework, asset monetisation is expected to generate predictable revenue streams for the government while enhancing service delivery.

Read More: DoT Steps in to Resolve Mobile Network Crisis at Navi Mumbai Airport.

Conclusion

The plan to lease 26 airports and divest stakes in five aviation entities forms part of the government’s broader strategy to improve efficiency in the civil aviation sector. The monetisation target of ₹27,500 crore over five years reflects the scale of investment required to upgrade and expand airport infrastructure.

By using the OMDA model and structured bidding, the government aims to balance private sector efficiency with continued public ownership. The proposal marks a significant step in strengthening long‑term capacity and operational standards across India’s airport network.

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