The Airports Authority of India (AAI) has invited fresh bids for the expanded city side area at the Udaipur airport. While AAI’s tender for city side development in October, with 11.43 acres, had elicited good response with bidders like the Omaxe, GMR and Unitech in the fray, this time it has expanded the area to 50.93 acres.

City side development entails creation of all non-aeronautical facilities from commercial real estate to parking areas, restaurants and so on. Successful bidders will be responsible for commercial exploitation of airport area by developing facilities like hotels and conference centres. The logic is that business travellers fly to a city, hold their meetings at the airport and then return, a common practice abroad.

The other components private players will be responsible for are — running parking lots; commercial space within the terminal and also housekeeping of terminals. While Public-Private-partnership in city side development is being opposed in certain quarters of Airports Authority of India (AAI), the Government took this decision as it felt the AAI was not able to tap commercial potential of airports.

Udaipur is among the 35 non-metro airports to be developed on Public-Private-partnership basis. While AAI will carry out all air side development, private investment will be used to develop the non-aviation functions of the airport. Udaipur is the first airport where city side development will start.