Eleven airports have been identified for monetisation (leasing) during the five-year period
The next round of airport leasing (divestment) just got a boost, with the Centre setting a monetisation target of ₹27,500 crore for the civil aviation sector under the National Monetisation Pipeline (NMP) 2.0 for FY26 to FY30.
At present, 11 airports have been identified for monetisation (leasing) during the five-year period. The proposal is being considered by the Public Private Partnership Appraisal Committee (PPPAC). These airports include Varanasi, Bhubaneswar, Amritsar, Indore, Raipur, Trichy, Calicut, Coimbatore, Ranchi, Jodhpur and Gaya.
NMP 2.0 framework covers operational, revenue-generating airports and select equity divestments in aviation-related public sector entities. The framework provides for structured private participation, while ownership of core airport assets will remain with the government.
Sale of airports
Besides, the framework states that the programme does not involve the outright sale of airports. Instead, airports will be offered under long-term concession agreements for a fixed duration, after which the assets will revert to the public authority.
According to the framework, the primary model proposed is the time-tested Operation, Maintenance and Development Agreement (OMDA). In this structure, private concessionaires will operate and maintain airports, undertake capital expenditure for modernisation and expansion, and pay upfront concession fees or share revenue with the government or airport authority.
Furthermore, long-term Public Private Partnership (PPP) concessions will also be deployed, typically spanning 20 to 50 years. In addition, select strategic stake sales or equity divestments may be undertaken through initial public offering or follow-on public offering routes.
Notably, under the previous National Monetisation Pipeline covering FY22 to FY25, the civil aviation sector had a monetisation target of ₹13,500 crore.
According to official estimates, the ₹27,500 crore total monetisation value includes upfront concession payments, the present value of future revenue share payable to the government or public sector undertakings, and committed private sector investment.
However, after adjusting for depreciation of airport assets during the concession period, the aggregate monetisation value is estimated at ₹22,500 crore. According to projections for FY26 to FY30, the majority of proceeds are expected to accrue to airport authorities and public sector undertakings.
Moreover, some inflows are projected beyond FY30 based on the concession structure.
Published on February 24, 2026