New Delhi: The Government of India has set an ambitious monetisation target of ₹27,500 crore for the civil aviation sector under the National Monetisation Pipeline (NMP) 2.0, covering the period from FY2026 to FY2030.
The move is aimed at accelerating private participation in airport operations while ensuring public ownership of critical infrastructure.
The renewed monetisation framework focuses on leasing operational and revenue-generating airports through structured public-private partnerships, enabling private investment in modernisation, expansion, and improved passenger services.
The initiative is also expected to support the government’s broader infrastructure development plans and fiscal consolidation goals.
Eleven Airports Identified for Leasing
As part of the plan, eleven airports have been identified for monetisation. These include Varanasi, Bhubaneswar, Amritsar, Indore, Raipur, Trichy, Calicut, Coimbatore, Ranchi, Jodhpur, and Gaya.
These airports will be offered to private concessionaires under long-term agreements rather than outright sale.
The proposal is currently being examined by the Public Private Partnership Appraisal Committee (PPPAC), which evaluates PPP projects before final approval.
The leasing process will be implemented under the supervision of the Airports Authority of India and the Ministry of Civil Aviation.
Long-Term Concession Model to Be Used
Under the NMP 2.0 framework, airports will be leased through concession agreements typically ranging from 20 to 50 years. Ownership of the airport assets will remain with the government, and control will revert to public authorities after the concession period ends.
The primary structure proposed is the Operation, Maintenance and Development Agreement (OMDA).
Under this model, private operators will manage airport operations, invest in upgrades and infrastructure expansion, and pay concession fees or share revenue with the government.
The framework also includes provisions for strategic stake sales or equity divestments in aviation-related public sector undertakings through IPO or FPO routes.
Revenue and Investment Projections
Official estimates suggest that the total monetisation value of ₹27,500 crore includes upfront concession payments, projected revenue shares, and committed private investments.
After accounting for asset depreciation during concession periods, the adjusted monetisation value is estimated at ₹22,500 crore.
Most of the revenue is expected to accrue between FY2026 and FY2030, with some inflows continuing beyond FY2030 depending on concession timelines.
Higher Target Compared to Previous Cycle
The aviation monetisation target under NMP 2.0 represents a significant increase from the ₹13,500 crore target set under the previous National Monetisation Pipeline covering FY2022 to FY2025.
The revised target reflects the government’s intent to scale up infrastructure monetisation and enhance efficiency through private sector participation.
Official Quote
A senior official from the Ministry of Civil Aviation said,
“Airport monetisation under NMP 2.0 is designed to unlock value from existing public assets while maintaining government ownership. Private participation will bring efficiency, investment, and improved passenger experience, while ensuring long-term revenue for public authorities.”
The monetisation drive is expected to strengthen India’s aviation infrastructure and support the growing demand for air travel in the coming decade.
