Question : Criteria for Development of Second Airport

(a) whether no Greenfield Airport is allowed within an aerial distance of 150 km of an existing Airport whereas a second Airport in the same city is allowed and if so, the details thereof;

(b) the parameters for distribution of traffic between the two Airports;

(c) whether the Government proposes to allow new Airports within the stipulated 150 km radius of an existing Airport even if its capacity is not saturated if so, the details thereof;

(d) whether the private players operating the existing Airports refuse to accept the second Airport within 150 km radius as per the agreement and if so, the details thereof; and

(e) the reaction of the Government as well as the developer of second Airport thereto?

The Minister of State (IC) in the Ministry of CIVIL AVIATION
(Shri Hardeep Singh Puri)

(a): Government of India (GoI) has formulated a Greenfield Airport Policy, 2008 which provides guidelines for establishment of new Greenfield Airports in the country. As per Policy, an airport developer, including the State Governments, willing to establish an airport are required to send a proposal to the Ministry of Civil Aviation (MoCA). As per Para 8.1 of Greenfield Airport Policy, 2008, no greenfield airport is allowed within aerial distance of 150 Km of an existing civilian airport. However, establishment of a Greenfield Airport is allowed within 150 Km of an existing civilian airport after carrying out the impact assessment on the existing airport. Such cases are decided by the Government on a case to case basis.
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(b) : The distribution of traffic between two Airports is demand driven and airlines plan their schedule based on their company policy and traffic at the Airports. ;
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(c) : As per Greenfield Airport Policy, 2008, Government of India allows construction of new Greenfield Airport within radius of 150 kilometers from the existing airport on a case to case basis.

(d) & (e): Government of India has granted exclusive rights to the two airport operators in the country namely Hyderabad International Airport Limited and Bangalore International Airport Limited that no new or existing airport shall be permitted by GoI to be developed within an aerial distance of 150 kilometers of the Airport before the twenty-fifth anniversary of the Airport Opening Date (except for Mysore and Hassan airports in case of Bangalore). In addition, GoI has also granted rights to the private airport operators of Delhi and Mumbai airports in the form of Right of First Refusal (RoFR) in respect of the second airport within 150 kms of the respective airports. These operators can participate in the competitive bidding process of the respective airports and if their bid is within the range of 10 percent of most competitive bid, they have right to match the highest bid by using RoFR Clause. ;

In case of Navi Mumbai International Airport (NMIA), the concession was awarded to Mumbai International Airport Limited (MIAL) which was operating Mumbai Airport by exercising RoFR. In case of Jewar International Airport which is near Delhi, the existing airport operator i.e. Delhi International Airport Limited (DIAL) participated in the bid process but was unable to take the advantage of RoFR, as their quote was not within 10 percent range of the winning bidder.