The Central Government has given its approval to privatise the Chennai and Kolkata airports which are currently operated by the Airports Authority of India (AAI).
 

The move is to bring in private operators to run airports. The inter-ministerial group intends to privatise the older terminals by bringing in a JV partner to manage operations at the two airports.

However, the AAI has invested Rs 2,325 crore and Rs 2,015 crore in Kolkata and Chennai airports respectively to modernise them. The new terminals might be leased out to the private concessionaire who will be asked to pay a compensation for the investments made by the Airports Authority.

The others in line for privatisation - as envisaged by the Prime Minister in the current financial year - include Lucknow, Guwahati, Jaipur and Ahmedabad.

Besides, AAI has sought approval from the government to raise Rs 1,000 crore through issue of tax-free bonds to develop 50 low-cost airports in the country.