The Airports Authority of India (AAI) is reportedly planning to monetise 759 acres of land near eight major Indian airports.

The move is aimed at enabling private firms to create warehouses, hotels or restaurants on the land.

Funds generated through the land monetisation will be used to develop airport infrastructure, an AAI senior executive revealed.

The official added: “The AAI has identified the following land parcels of airports for city side development: 145 acres near Kolkata airport, 45 acres near Amritsar airport, Bhubaneswar airport, 35 acres near Jaipur airport, 60 acres near Varanasi airport, 217 acres near Lucknow airport, 80 acres near Raipur airport and 117 acres near Tirupati airport.”

The AAI, which is responsible for creating, upgrading, maintaining and managing civil aviation infrastructure in India, will categorise the revenue as either non-traffic or non-aeronautical.

The official said: “The land is likely to be leased to any company or organisation for a period of 25 to 30 years for a fixed annual rental income.”

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By GlobalData

The AAI has completed the demand assessment and financial viability studies at certain land parcels and expects the tenders to be released soon.

Operating under the Ministry of Civil Aviation, AAI owns and manages 129 airports in India. In the financial year of 2017 – 18, 94 airports incurred a loss.

Civil Aviation Minister Hardeep Singh Puri introduced the plans to monetise the land on 27 June 2019 at the lower house of the Parliament, Lok Sabha.

In August, AAI revealed an Rs190bn ($2.67bn) plan to modernise poor airport infrastructure across India.

Earlier this year, Adani Enterprises was the highest bidder to manage, operate and develop facilities at five airports in the country.

The airports included Ahmedabad, Jaipur, Mangaluru, Trivandrum (Thiruvananthapuram) and Lucknow.