PPP in India aviation infrastructure sector; ICRA Ltd.

Abstract

My project was in the Infrastructure Sector, specifically the study of the development and modernization of Civil Aviation Infrastructure in India. To accomplish the job at hand, I was assigned a mentor having expertise in the said sector. My eight weeks of summer internship includes: • The thorough study of the 10th 5 year Plan of India and the planned investments in this sector • The actual progress made on the plans proposed in the 10th 5 year plan • The current regulatory and policy framework prevailing in India • The study of the concession agreements between the Central government and the Delhi, Mumbai, Bangalore and Hyderabad airport operators • The study of the evolution of economic regulation in the Airport sector in U.K and Singapore and also the current regulatory frameworks in these countries • To identify the bottlenecks in the development of Indian civil aviation infrastructure sector • The role of the private sector and how they can help in meeting the gap in funding and expertise in this sector • The study of various costs and revenue streams of an airport and how various airport charges are determined • The classification between aeronautical and non-aeronautical services • Financing of the development and modernization of metro and non-metro airports • The new regulations put forward by the Airport Economic Regulatory Authority and their effect on the existing agreements between the Central government and the private airport operators • A thorough study of the User Development Fee levied at the airports and how it is determined • To study the modernization and operation of one airport (the cost of modernization, operational costs and revenues) by a private player and determine the tariff structure that can be levied in order to make it economically viable • To suggest recommendations to boost private participation in this sector