Ministry recommends capping of airports for privatisation
India's Ministry of Civil Aviation has proposed capping the number of airport bundles a single bidder can win to prevent an oligopoly in the sector. This move follows the rapid expansion of the Adani Group and aims to ensure fair competition for the upcoming privatization of 11 airports.
Why it matters
The policy shift aims to balance infrastructure development with market competition, preventing a single entity from dominating the country's aviation infrastructure.
The Ministry of Civil Aviation has proposed capping the number of airport bundles that can be awarded to a single bidder at “two to three bundles”, or roughly five to six airports, for the third round of airport privatisation involving 11 airports in order to prevent an “oligopoly” as the airport sector has seen which has seen the Adani Group grow from having no presence in airport operations a decade ago to becoming the country’s largest private airport operator.
The report provides a balanced overview of the ministry's proposal and the rationale behind it, citing industry concerns.
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