Question : Privatisation of Airports

(a) whether a number of airports including Delhi, Mumbai have been given to the operating companies of private sectors in the country;

(b) if so, the details thereof;

(c) the terms and criteria adopted by the Government and the companies of private sector in this regard;

(d) whether the role of airport authority with the operating companies of private sector has been ensured;

(e) if so, the details thereof; and

(f) the name of the companies which have shown interest for operating and reconstructing the airports along with the companies selected by the Government in this regard?

Answer given by the minister

The Minister of State in the Ministry of CIVIL AVIATION

(a) & (b): Airports Authority of India (AAI) has recently awarded six airports namely Ahmedabad in Gujarat, Jaipur in Rajasthan, Lucknow in Uttar Pradesh, Guwahati in Assam, Thiruvananthapuram in Kerala and Mangaluru in Karnataka for Operations, Management and Development under Public Private Partnership (PPP) for a period of 50 years. Besides, AAI had leased out Delhi and Mumbai Airports in 2006 to M/s Delhi International Airport Limited and M/s Mumbai International Airport Limited respectively for Operations, Management and Development under PPP mode for a period of 30 years.

(c) to (e): The criteria for selection of airports for PPP mode inter-alia include:-
(I) Quantitative criteria such as:(i) Revenue aspects i.e. total terminal Area, growth rate in revenue, Occupancy rate-Retail Area.(ii) Profitability aspects i.e. total revenue, total operating Cost, Operating Cost/PAX, Operating Cost/ Terminal Area. (iii) Commercial aspects i.e. total PAX, total Air Traffic Movement (ATM), international PAX, volume of cargo, projected 15 year Compounded Annual Growth Rate (CAGR)-PAX, projected 15 year CAGR-Cargo,city side land availability for real estate development.;

(II) Qualitative criteria such as:(i) Growth potential i.e. capacity utilization, expansion possibility & future development plan,(ii) Location and economic attractiveness i.e. Net State Domestic Product, urban population in the influence area, Annual Exponential Growth rate.;

AAI has signed Concession Agreements with the concerned PPP partners for the above airports whereas the exclusive right and authority has been granted to the PPP partner during the concession period to undertake some of the functions of the AAI i.e. operation, maintenance, development, design, construction, upgradation, modernization, finance and management of the Airport. The roles and responsibilities of the Authority and PPP partner are mainly governed by provisions of Concession Agreements signed for the airports.;

(f): A total of 32 bids were received for the recently awarded six airports from GMR Airports Ltd., Adani Enterprises Ltd., AUTOSTRADE Indian Infrastructure Development Pvt. Ltd., PNC Infra tech Ltd., NIIF & Zurich Airport International Ag., AMP Capital (GIF II Lux Holdco) 5 LP, I-Investment Ltd., Kerala State Industrial Development Corporation (KSIDC), Cochin International Airport Ltd. and M/s Sanna Enterprises. All six airports were awarded to highest bidder i.e. M/s Adani Enterprises Limited.

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