The Government of India has proposed leasing out operations of 26 state-owned airports to private players and divest stakes in five airport-linked entities
under its National Monetisation Pipeline (NMP) 2.0 in a bid to raise funds and improve efficiency in the civil aviation sector.
The Ministry of Civil Aviation plans to develop the 26 airports through a public-private partnership framework that allows private firms to operate, manage and expand facilities while ownership remains with the government. It plans to do so through the Operation, Management and Development Agreement (OMDA) model.
Under the proposal, the government has set a total monetisation target of ₹27,500 crore for the civil aviation sector between FY26 and FY30, including ₹14,950 crore from leasing AAI airports under the OMDA model and ₹12,550 crore from divesting stakes in one subsidiary and four joint venture airports.
The identified airports will be grouped into three groups and bid out over the five-year period, beginning with an initial set of 11 airports.
At the same time, AAI’s stake will be diluted through initial public offerings, follow-on offerings or private placements.
The NMP 2.0 shall broadly follow the concept of asset monetisation as laid out in NMP 1.0, comprising elements such as transfer of assets for a limited period, divestment of portions of listed entities to unlock additional capital, securitisation of cash flows or strategic commercial auctions, according to a PIB statement.
How does the OMDA model work?
The OMDA model is not new. It was first implemented in 2006 with Delhi and Mumbai airports.
Under the OMDA model, private operators pay an upfront fee for each airport and share revenue with AAI through per-passenger charges, creating both immediate and long-term income streams for the government.
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