India postpones tenders for privatisation of Ahmedabad and Jaipur airports

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The Airports Authority of India (AAI) has postponed the tenders for the privatisation of Jaipur and Ahmedabad airports, international airports serving the states of Rajasthan and Gujarat, respectively. The authority received four bids for Ahmedabad airport and three for Jaipur but only one for each of the airports was deemed qualified.

The authority has now sent altered privatisation proposals to the government ministries of finance and aviation for review. Decisions are expected in the next few weeks. 

The Indian government has been trying to privatise the airports since 2014. A tender launched in 2017 failed to attract any bidders, reportedly due to the low prospects of revenue generation. Interested parties requested a relaxing of stringent performance-related monitoring parameters, a greater say in capital expenditure planning and infusion, and clarity on ownership structure.

However, the altered proposals tendered in March are evidently still not seen as attractive.

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