NEW DELHI: The Airports Authority of India (AAI) has for the first time decided to make state governments equity partners in airport projects, in sync with the Narendra Modi government’s focus on making states partners in growth. The state-owned airport operator has made an offer to the Uttar Pradesh government to become a partner in the proposed Kushinagar airport.
“The airport in Kushinagar will be developed by a Special Purpose Vehicle (SPV) with UP government as an equity partner. This will ensure focused development for the airport and also the area,” said a top AAI official, who did not want to be identified.
Earlier, state governments only provided land to the AAI, which builds and operates the airports. Although the AAI has never partnered states, green-field airports developed in Hyderabad and Bengaluru through private participation have the respective state governments as partners.
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