11 Mar 2025
It is considering amending the Airports Authority of India (AAI) Act, 1994, to permit non-aviation linked businesses on the airport land.
If the Indian government goes through with the amendment to the AAI Act, it will allow private operators to establish commercial hubs on the airport land and offer non-aviation linked services. This could include shopping hubs, centres for corporate events and conferences and offices around airports.
The Civil Aviation Ministry is conducting inter-ministerial discussions, which could lead to a bill being introduced in the Parliament. This entire effort is part of the broader plan to privatise 11 airports in tier II cities, including Amritsar, Bhubaneshwar, Varanasi, and Raipur, by the end of FY2026.
The amendment will maintain restrictions on polluting activities, while unlocking a prime land parcel for commercial projects from the private sector.
Chapter 3, Section 12 of the AAI Act,1994, allows commercial activities at airports limited to hotels, restaurants, and warehouses; other real estate development is not allowed. The government will keep land usage provisions flexible.
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