Govt may limit a single entity to two airport blocks (four airports) to prevent market concentration.
Move gains urgency as Adani signals aggressive bids for all 11 airports, echoing its 2018 sweep.
Airlines warn of operational shutdown risks as ATF prices surge amid the West Asia conflict and rising crude.
India is preparing to impose limits on bids by a single entity in the planned privatisation of 11 airports, amid growing concerns over market concentration, The Economic Times reported. The move follows rising fears of monopolistic dominance in the aviation sector, which came under scrutiny after the IndiGo crisis last year.
According to the report, government officials involved in the process said discussions have begun on structuring bidding rules to encourage competition while preventing excessive concentration of assets in the hands of a single player.
1 April 2026
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In the 2018 privatisation round, no such cap was imposed, allowing Adani Enterprises to emerge as the highest bidder for all six airports on offer. Adani Group Director Jeet Adani has since indicated that the group will aggressively pursue all 11 airports in the upcoming round, prompting policymakers to consider safeguards.
However, some officials caution that imposing strict limits could make bidders more conservative and potentially reduce auction proceeds.
Under the proposal, a single entity would be allowed to win a maximum of two blocks—equivalent to four airports. If the same bidder tops a third block, the next-highest bidder would be given the option to match the winning price. The final decision will rest with the Public Private Partnership Appraisal Committee.
First-of-Its-Kind Bundling Strategy
The upcoming privatisation round will include seven smaller airports bundled with six larger ones in similar geographies, in a bid to make less commercially viable assets more attractive to investors.
Under this model, Varanasi will be paired with Kushinagar and Gaya, Amritsar with Kangra, Bhubaneswar with Tirupati , Raipur with Aurangabad , and Trichy with Hubli.
Officials across ministries remain divided. A senior civil aviation ministry official noted that airports inherently carry monopoly risks, and excessive concentration could pose systemic threats.
Meanwhile, a finance ministry official warned that bid caps may dampen competition and reduce the government’s eventual revenue from the sale.
The 2018 round generated significant returns, with the Airports Authority of India (AAI) currently earning over ₹700 crore annually in fees from the six privatised airports.
Aviation Sector Under Pressure
The privatisation push comes at a time when India’s aviation sector is under severe strain due to the ongoing West Asia crisis.
The Federation of Indian Airlines (FIA), which represents Air India, IndiGo, and SpiceJet, has warned the Centre of potential flight cancellations, stating that the industry is on the verge of “stopping operations” due to a surge in aviation turbine fuel (ATF) prices.
The FIA said the current ad hoc pricing structure is creating severe operational imbalances, rendering airline networks “unviable and unsustainable.”
Crude oil prices have already surged to multi-year highs of $119 per barrel amid the conflict. Analysts warn that if the war extends beyond mid-May and the Strait of Hormuz remains shut, Brent crude could rise to as much as $150 per barrel—raising the risk of a global recession and economic slowdown.
Airlines are also grappling with longer flight routes and higher fuel burn due to airspace restrictions linked to the conflict, further compounding cost pressures.
