FinMin Sounds Alarm on Airport Monopoly Risks
What Happened
The Finance Ministry has raised concerns about the growing concentration of India's airport sector, warning that the ongoing privatisation process could create an oligopoly. In response, the government is considering capping the number of airports a single bidder can win in the upcoming privatisation round covering 11 airports.
Key Takeaways
According to the discussions, private operators Adani Group and GMR together handle more than half of India's air passenger traffic, prompting concerns that excessive concentration could limit competition. The proposed cap would prevent one company from acquiring too many airports and could also reduce risks associated with large debt-funded acquisitions.