AAI to be allowed to monetise its 50,000 acres land bank
In a move that will unlock a revenue source for Airports Authority of India (AAI), the finance minister today announced changed in rules to allow monetisation of land assets owned by the state-owned airport operator.
AAI is estimated to own about 50, 000 acres of land in and around its airports across the country.
“The Airports Authority of India (AAI) Act will be amended to allow monetisation of land assets owned by AAI,” Finance Minister Arun Jaitley announced in the Budget.
AAI gets land from state governments to be used for building airports in the cities. Allowing AAI to unlock land will provide them enough resources to fund airport expansion plans in the country.
The rules currently do not allow the land around airport to be used for non-aviation purposes, which means a hotel cane be made on the land but the same land cannot be rented to any Information Technology companies.
