Lok Sabha Question No. 44 (UNSTARRED), answered on 2026-01-29
Subject: Compensation to Airport Operator
Ministry: CIVIL AVIATION
Asked by: Shri P C Mohan

## GOVERNMENT OF INDIA MINISTRY OF CIVIL AVIATION

## LOK SABHA

## UNSTARRED QUESTION NO. : 44

(To be answered on the 29 th January 2026)

## COMPENSATION TO AIRPORT OPERATOR

## 44. SHRI P C MOHAN

Will the Minister of CIVIL AVIATION be pleased to state:-

- (a) the details of the criteria and policy guidelines for providing compensation or revenue protection to an existing airport operator when approval is granted for a second airport in the same metropolitan region including cases such as Kempegowda International Airport Limited (KIAL), Bengaluru;
- (b) the procedure and institutional steps required to be taken for assessment and approval of such compensation, including the roles of the Airport Authority of India (AAI), the Ministry of Civil Aviation and the State Government;
- (c) whether any timeline has been prescribed for completion of this processand if so, the details thereof;
- (d) whether the impact of a second airport on passenger traffic and aeronautical and non-aeronautical revenues of existing operators has been assessed and if so, the findings thereof; and
- (e) the  financial  support  and  policy  commitments  required  from  the  concerned State Government for implementation of such mechanisms?

## ANSWER

Minister of State in the Ministry of CIVIL AVIATION

(Shri Murlidhar Mohol)

(a) to (e):  As per Greenfield Airports (GFA) Policy, 2008, development of greenfield airport within an aerial distance of 150 kilometer of an existing civilian airport is not generally  permitted.  It  may  however  be  allowed,  on  a  case  to  case  basis,  after examination of its impact on the existing airports.

In  cases  where  the  existing  airport  is  of  Airports  Authority  of  India  (AAI),  the National Civil Aviation Policy, 2016  stipulates that AAI  may  be  suitably compensated by Government of India and/or the State Government or the private sector airport operator in case a new Greenfield airport is approved in future within a  150  km  radius  of  an  existing  operational  AAI  airport  (not  applicable  to  civil enclaves).  However,  such  a  compensation  will  be  considered  only  if  the  current capacity of the existing AAI airport is not reaching the saturation point in the year of commissioning of the new project. As an alternative to compensation, AAI may be given option at the discretion of the airport developer to either have the right of first refusal, or equity participation between 26%  to 49% in the new airport or AAI may  be  allowed  to  form  JV  with  the  participating  State  Government.  Once  the options are given to AAI and if AAI chooses not to avail of any of these options, then no compensation will be due. This is however not applicable in cases of existing airports  governed  by  OMDA/  Concession  Agreement  (CA),  where  provisions  of those agreements shall prevail.

Kempegowda International Greenfield Airport (KIA), Bengaluru has been developed under Public Private Partnership (PPP), where CA has been signed by Government of India (GoI) with the concessionaire- M/s Bangalore International Airport Limited (BIAL).

As per the CA signed, no new or existing airport (except development of Mysore and Hassan as Domestic airports) within an aerial  distance  of  150  kilometers  of Kempegowda International Airport (KIA), Bengaluru is permitted for development/improvement/upgradation before the 25th anniversary of the airport opening date.

No  specific  timeline  has  been  prescribed  for  completion  of  the  assessment  and approval of compensation etc.

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