Will be interesting to see how govt completes airport leasing: Law firm

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Even as the government has approved the proposal for leasing out of three Airports Authority of India (AAI)-run airports, what is to be seen is how effectively and efficiently would it be able to complete the process especially during the coronavirus pandemic, a Delhi-based law firm has said.

On Wednesday, Union Environment Minister Prakash Javadekar announced that the government has given its go-ahead to lease out Guwahati, Thiruvananthapuram and Jaipur airports through public-private partnership (PPP).

"After the success of Delhi and Mumbai airports, what needs to be seen for the future airports privatisation is how effectively and efficiently would the government be able to complete the process especially during the pandemic," said Poonam Verma, partner, J Sagar Associates, said.

Initiating a process and not finishing it add to the uncertainty for the successful bidder, which should be avoided, Verma added.

She said it has been observed that revenue share payments have been getting delayed from time to time, making it difficult to actively take up the future privatisation process. Verma also added this must be sorted by the government with clear implications, incentives or disincentives in place to tackle such payments.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

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