The Centre is considering offering Chennai and Kolkata airports to private operators under the public-private partnership (PPP) model as part of its next phase of airport infrastructure development. The proposal aims to improve facilities, upgrade infrastructure and bring the two major airports in line with other metropolitan airports that are already under private management.
Both airports are currently owned and operated by the Airports Authority of India (AAI). The proposal is still under consideration and does not represent a final decision to transfer their operations to private companies.
Push for Better Airport Facilities
The move follows calls for improved services and infrastructure at Chennai airport. In August 2026, Tamil Nadu Chief Minister C. Joseph Vijay wrote to Prime Minister Narendra Modi seeking a change in the airport’s operator. He highlighted the importance of improving passenger traffic, aircraft movements and cargo handling to support the state’s industrial growth and investment environment.
In Kolkata, the proposed change comes amid efforts to upgrade airport infrastructure and services in West Bengal. Kolkata airport is a major aviation hub for eastern India and serves as an important gateway to the northeastern states.
The government has previously used the PPP model to attract private investment and operational expertise into airport infrastructure. Major airports in Delhi, Mumbai, Hyderabad and Bengaluru are already operated by private entities.
Chennai Airport Handles Over 23 Million Passengers
Chennai airport handled 23.01 million passengers in the financial year 2025–26, a 2.7% increase from the previous year. Its existing terminals have a combined annual capacity of around 30 million passengers, which is expected to rise to 35 million following the commissioning of a new terminal.
Kolkata airport handles more than 21 million passengers annually and ranks among India’s busiest airports. It supports domestic and international travel, business activity and cargo movement, while providing important connectivity to northeastern India.
Private Operators Could Manage Development and Operations
The Ministry of Civil Aviation has used an Operation, Maintenance and Development Agreement (OMDA) model for airport development through private participation. Under this framework, private concessionaires operate, manage and develop airport facilities, while AAI retains responsibility for air traffic control and communication, navigation and surveillance services.
Private participation can bring additional capital and operational expertise for terminal upgrades, passenger services, commercial facilities and other infrastructure. The financial structure can also generate revenue for AAI through passenger-related charges and upfront payments from private operators.
Part of a Wider Airport Monetisation Plan
The proposal comes as the Centre advances a wider airport monetisation programme. In August 2026, the Public Private Partnership Appraisal Committee gave in-principle approval to a plan to offer 11 regional airports in five bundles for private operation, management and development over 50 years.
The Chennai and Kolkata proposal would extend the government’s efforts to expand private participation in airport infrastructure. However, the next steps will depend on the government’s assessment, the final concession structure and the process for selecting potential operators.
If implemented, the model could bring new investment and operational changes to two important metropolitan airports. The extent of improvements will depend on the terms of the agreements and the investment commitments made by the selected operators.
