Asset monetisation plan: Sports infrastructure to follow airport PPP model

The government would be redeveloping two national stadiums, including the marque Jawaharlal Nehru Stadium in New Delhi and two regional sports centres at Bengaluru and Zirakpur on a public-private partnership (PPP) mode as part of its asset monetisation plan. The mode of monetisation for these would be operation, management and development agreement (OMDA) model adopted for airports like Delhi and Mumbai.

The agreement period or concession period in airports is 30 years with a joint venture (JV) company formed with Airports Authority of India to run the asset having right to seek further extension of 30 years subject to no event of default in the preceding five years. The Jawaharlal Nehru Stadium monetisation would be similar both for sports and non-sports facilities. The capital expenditure planned for the stadium is Rs 7,853 crore.

The government has pitched for the PPP mode after India’s recent good performance in the Tokyo Olympics. “There is a pressing need for financial sustainability in sports and to explore mixed-use areas that are connected and accessible to promote sporting culture. Hence, the PPP framework is being explored to tap private sector efficiencies in design and management, which can revitalise the facilities and optimise usage,” said the national monetization pipeline document released on Monday.

The four assets that would be offered, of which one stadium, is yet to be identified belong to the Sports Authority of India (SAI) that is administered by the Union ministry of youth affairs & sports. According to the document, while the award of the four assets is planned in a phased manner over FY22 and FY 23, the actual capital expenditure (capex) may take place over a three to four-year period. “Any concession fee, upfront premium and revenue share payments to authority are over and above the indicative monetisation value (Rs 11,450 crore) and will be discovered based on market testing with transaction.” The capex would be Rs 1,650 crore in FY22, Rs 2,100 crore in FY23, Rs 3,200 crore in FY24, and Rs 4,500 crore in FY25.

A mixed-used urban development is envisaged for an integrated sports infrastructure development model, focusing on optimisation by hosting sporting and non-sporting events. 

“Large infrastructure facilities host several international events, and maintaining these venues after the events are over or in between events is a challenge globally. Stadia fall to disrepair and disuse due to lack of foresight across the life cycle of a stadium,” said the document. The SAI assets are currently largely managed under three broad categories — stadiums managed by the stadia division, regional centres and academic institutions.

The stadia division is responsible for formulating policy guidelines for the utilisation of five SAI stadiums in Delhi, having different facilities. Besides the Jawaharlal Nehru Stadium Complex, there are Indira Gandhi Sports Complex, Dr. Shyama Prasad Mukherjee Swimming Pool Complex, Major Dhyan Chand National Stadium and Dr. Karni Singh Shooting Range.

The SAI regional centres and sub-centres and academic institutions are the implementing agencies for its sports promotional schemes and academic programmes.

All eight hotel assets of ITDC have been considered for monetisation
 

All eight hotel assets of ITDC have been considered for mone­tisation during FY22-25. Long-term leasing, divestment or operation, maintenance and training (OMT) contracts would be the potential models for monetisation. A decision would be taken on a case-to-case basis based on due diligence.