The government needs to be cautious as it moves ahead with involving the private sector in the operation, management and development of six more airports. This is the view of some analysts BusinessLine contacted after Finance Minister Nirmala Sitharaman outlined the proposal to put up another six airports for bidding.
The Finance Minister said India would become a global hub for aircraft maintenance, repair and overhaul (MRO) and also spoke of easing of restrictions on use of air space for a reduction of flying costs by about ₹1,000 crore.
Call for caution
Peeyush Naidu, Partner, Deloitte India is clear that airports continue to remain an attractive investment class, but he cautions that given the impact Covid-19 is having on the aviation sector, the government needs to be cautious in its timing and choice of airports to be handed over to the private sector.
