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Policy On Merchant Airports

In a step that could allow 100 per cent foreign direct investment (FDI) in the development of airport infrastructure, the Government is fast moving towards finalizing a policy on merchant airports.

Under this new concept, merchant airports will be built entirely by private parties with their own resources, without any government funding. Under the proposed policy, the Government would allow entrepreneurs to set up and operate airports on the basis of commercial viability. However, these airports would function subject to safety and security oversight of the Government.

As such a project would require huge investments, the Government might adopt a more liberal and licence-based approval procedure, besides allowing 100

per cent FDI in such airports. Merchant airports would also be beneficial in developing new cargo hubs, thereby providing a thrust to cargo and freight handling.