The aviation ministry has started the process to fetch approvals, including cabinet approval, from various government departments to go ahead with the sale.
Sources told ET that the issue was discussed at a meeting of the core group of secretaries for asset monetisation or CGAM held last month.
“The aviation ministry has an asset monetisation target of Rs 20,000 crore for the 2022 fiscal. While privatisation of airports will contribute to that target, this move could become the largest contributor to the target,” said an official, who did not want to be identified.
The meeting of the CGAM was attended by aviation secretary Pradeep Singh Kharola. Email and messages sent to Kharola did not elicit any response. Aviation ministry’s spokesperson asked us to get in touch with Department of Investment and Public Asset Management, which did not respond to email sent late on Saturday.
The government, through Airports Authority of India (AAI), owns 26% each in Delhi and Mumbai airports and 13% each in Bengaluru and Hyderabad airports.
Sources added that the move will not impact the revenue share arrangement that AAI has with Delhi and Mumbai airports.
Delhi International Airport Ltd or DIAL, which runs Delhi airport, shares about 45.99% and Mumbai International Airport Ltd (MIAL), which runs Mumbai airport, shares 38.7% of their revenues with AAI and that forms a large part of the state-owned airport company’s revenue.
Bangalore International Airport Ltd or BIAL, which runs the airport in Bengaluru, and GMR Hyderabad International Airport or GHIAL, which runs the airport in Hyderabad, do not share any revenues with AAI.
Sources added that the promoters of these airport companies have the right of first refusal or RoFR in these airport projects. The GMR group is the promoter for Delhi and Hyderabad airports and the Adani Group are the new owners of Mumbai airport. Fairfax Group are the promoters of BIAL.
Chances are likely that the existing promoters at all these airport companies will exercise the RoFR option and would buy the stake from the government.
The government has set a target to raise Rs 2.5 lakh crore through sale of assets in various government ministries.
Under the aviation ministry, the government is also in the process of selling 100% stake in Air India along with its subsidiary Air India Express and 50% stake in ground handling company AISATS and helicopter operator Pawan Hans Ltd. The stake sale in the these companies, however, are not expected to fetch a substantial amount of money.
