The Centre is planning to put in place a system under which new airports coming up in the country will be awarded on the basis of the revenue sharing. According to a Mint report, airport developers will have to compete to win contracts based on the revenue per passenger to be shared with the authority giving the contract. The current system mandates the sharing of a part of the profit from the venture. This will be fine-tuned after receiving industry feedback.
As profit-sharing contracts are prone to disputes, the government has already moved to similar ‘auctions involving revenue sharing’ models in investment-rich sectors such as oil and gas. The Civil Aviation Ministry expects this model to attract more investors as it will likely reduce controversies and litigation.
Minister of State for Civil Aviation Jayant Sinha said that the new policy would make air travel more affordable. India is targeting a billion air passengers by 2033-2038.
As you are no doubt aware, Swarajya is a media product that is directly dependent on support from its readers in the form of subscriptions. We do not have the muscle and backing of a large media conglomerate nor are we playing for the large advertisement sweep-stake.
Our business model is you and your subscription. And in challenging times like these, we need your support now more than ever.
We deliver over 10 - 15 high quality articles with expert insights and views. From 7AM in the morning to 10PM late night we operate to ensure you, the reader, get to see what is just right.
Becoming a Patron or a subscriber for as little as Rs 1200/year is the best way you can support our efforts.