India has witnessed significant developments in its airport infrastructure through joint ventures under the Public-Private Partnership (PPP) model. This model has enabled the creation of world-class airports, improved service delivery, and attracted private investments to supplement public funds. Currently, India has five PPP airports in Mumbai, Delhi, Cochin, Hyderabad, and Bengaluru, handling over 55% of the country’s air traffic.
Challenges faced by authorities:
- Increased charges: Higher charges at PPP airports have been a contentious issue for airlines and passengers.
- Capital expenditure: A clear process for determining capital expenditure and monitoring project costs has not been established, leading to budget overruns in some cases.
- Economic regulation: There is room for improvement in terms of economic regulation, land monetization, and management of project costs.
- Operating environment: Creating a more predictable operating environment on issues such as bilateral policy and airspace efficiency is necessary.
- Land acquisition and clearances: Delays in land acquisition, clearances, and shifting of utilities have adversely affected PPP projects.
To overcome these challenges, lessons from the PPP experience should be factored into future projects, and a more predictable operating environment should be created. Additionally, establishing a clear process for capital expenditure and monitoring project costs can prevent budget overruns and ensure the continued success of the PPP model in India’s airport infrastructure development. copyright©iasexpress.net