MoCA considering land bank model for land acquisition; plans to auction future airport contracts to private operators on the anvil

The MoCA is reportedly considering the land bank model to acquire land for airports (which will not divest landowners of their holdings) and has asked AAI to prepare a concept note on this model of land pooling. Under this model, state governments, instead of buying the requisite land, will develop new infrastructure on a much larger area and the landowners will then be allotted smaller plots with enhanced values in the developed area. Meanwhile, in a separate development, the MoCA is planning to auction its future airport contracts to private operators after setting fixed tariffs. The move will require amendments in the Airports Economic Regulatory Authority Act, which have already been initiated. It is expected to enhance the number of serious bidders and cushion passengers against arbitrary increases in user fees.