Centre Targets ₹27,500 Crore Aviation Monetisation Under NMP 2.0

The Centre has set a monetisation target of ₹27,500 crore for the civil aviation sector under the National Monetisation Pipeline (NMP) 2.0 for the period FY26 to FY30. The renewed framework seeks to accelerate private participation in operational, revenue-generating airports and select aviation public sector entities, while retaining government ownership of core assets.

The move provides fresh momentum to the next phase of airport leasing as the government expands infrastructure monetisation to support capital expenditure and fiscal consolidation.

Eleven Airports Identified for Leasing

A total of eleven airports have been identified for monetisation during the five-year period. These include Varanasi, Bhubaneswar, Amritsar, Indore, Raipur, Trichy, Calicut, Coimbatore, Ranchi, Jodhpur and Gaya.

The proposal is currently under consideration by the Public Private Partnership Appraisal Committee (PPPAC). The airports will be offered to private players under structured concession agreements rather than outright sale.

Framework and Monetisation Model

Under NMP 2.0, airports will be leased through long-term concession agreements, typically spanning 20 to 50 years. Ownership of the assets will remain with the government or airport authority, and the assets will revert to the public authority after the concession period ends.

The primary model proposed is the Operation, Maintenance and Development Agreement (OMDA). Under this structure, private concessionaires will operate and maintain airports, invest in modernisation and expansion, and pay either an upfront concession fee or share revenue with the government.

The framework also allows for select strategic stake sales or equity divestments in aviation-related public sector undertakings through IPO or FPO routes.

Monetisation Value and Revenue Projections

Official estimates indicate that the ₹27,500 crore monetisation value includes upfront concession payments, the present value of future revenue share payable to the government or public sector undertakings, and committed private investment.

After adjusting for depreciation of airport assets during the concession period, the aggregate monetisation value is estimated at ₹22,500 crore. Most proceeds between FY26 and FY30 are expected to accrue to airport authorities and public sector undertakings, with some inflows projected beyond FY30 depending on concession terms.

Important Facts for Exams

• National Monetisation Pipeline aims to unlock value from brownfield public assets.
• Airport monetisation is based on long-term PPP concession agreements, not outright sale.
• Operation, Maintenance and Development Agreement (OMDA) is a key airport PPP model.
• PPPAC appraises Public Private Partnership projects before approval.

Comparison with Previous NMP Cycle

Under the earlier National Monetisation Pipeline covering FY22 to FY25, the civil aviation sector had a target of ₹13,500 crore. The revised target of ₹27,500 crore under NMP 2.0 reflects a significant scaling up of asset monetisation efforts in the aviation sector, aligned with broader infrastructure growth objectives.