India Ashok Chawla Web Version

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Ministry of Civil Aviation

Government of India

Airports Infrastructure :

The Business Opportunities



Structure of Presentation

• Indian Aviation- The Emerging Story

• Airport Infrastructure Development

– Policy Framework

– Focus Areas

• Investment Opportunities



Indian Aviation- TheEmerging Story

CURRENT SCENARIO

Number of Aircraft (Scheduled Operation) 321

Passengers – Domestic ( Millions) 69– International( Millions) 26

Number of airports / airstrips 454

– AAI 97– International Airports 16

Number of Airlines 14



Growth Story

Year International Domestic Total

No. inmillion

%agechange

No. inmillion

%agechange

No. inmillion

%agechange

2003-04 16.64 12.20 32.14 11.20 48.78 11.60

2004-05 19.42 16.70 39.86 24.00 59.28 21.50

2005-06 22.36 15.10 50.98 27.90 73.34 23.70

2006-07 E 25.52 14.40 69.81 36.80 95.33 30.00

Year International Domestic Total

In ‘000tonnes

%agechange

In ‘000tonnes

%agechange

In ‘000tonnes

%agechange

2003-04 693.20 7.30 375.40 12.70 1068.60 9.10

2004-05 823.60 18.80 456.70 21.60 1280.30 19.80

2005-06 920.15 11.70 483.79 5.90 1403.94 9.70

2006-07 E 1013.12 12.00 531.08 9.10 1544.20 11.10

Pax

Cargo



Indian Market Evolution: 1992-2007Indian Market Evolution: 1992-2007

Total Airport Passengers (millions)Total Airport Passengers (millions)

Passenger TrafficGrowth Profile

3 NewAirlines

Entry of low costcarriers

7 Airlines 14 Airlines



Vision 2020

PASSENGERS GROWTH : 15% P.A.

NO. OF AIRCRAFT (Schd.Operation) : 1000

AIR PASSENGERS : 280 million

COUNTRY OF MORE THAN 1 BILLION

SKY IS THE LIMITSKY IS THE LIMIT



Airport InfrastructureDevelopment -

Policy Framework

Airport development in India- traditionally in publicsector.

AAI Act and Aircraft Rules amended ( 2004) to

enable private participation.

Public Private Participation (PPP) Model now thecornerstone of airport development.

100% FDI permitted in Greenfield Airports( Feb2006)- Development of new airports permissibleentirely in Private Sector as well.



Airport Development-

Focus Areas

Existing airports

Capacity ConstraintsAIRSIDE

TERMINALS

Spread of Growth at other airports Development of Regional Airports



InitiativesOn Airports

Metro Airports

Greenfield Airports

Regional Airports



Initiatives OnAirports

Metro Airports DELHI & MUMBAI, THE TWO MAJOR INTERNATIONAL

AIRPORTS RESTRUCTURED THROUGH JV ROUTE (2006)

Greenfield Airports NEW GREENFIELD AIRPORTS UNDER CONSTRUCTION ATHYDERABAD AND BANGALORE.

Non Metro Airports STATE OWNED AAI TAKING UP SELECT 35 NON-METRO

AIRPORTS FOR MODERNISATION.

CITY SIDE DEVELOPMENT OF NON-METRO AIRPORTS

THROUGH PPP




Metro Airports



Delhi Airport

Taken up for restructuring in May 2006 through JV route.

JV consists of:

GMR Group, Fraport AG, MAPL, IDF - 74%

AAI - 26% Annual Revenue Share to AAI- 45.9% of Gross Revenue

Capacity to be increased to 37 mppa from current 12

mppa by March 2010.

Investment- US $ 2.5 billion over 2006-16 for capacity of

50 mppa.



Mumbai Airport

Taken up for restructuring in May 2006 through JV route.

JV consists of :GVK, ACSA,BSD - 74 %

AAI - 26 %

Annual Revenue Share to AAI - 38.7% of Gross Revenue

Capacity to be increased to 27.5 mppa from current 22 mppa by March 2010

Investment- US $ 1.57 billion over 2006-15 for capacity of 37 mppa.



Kolkata andChennai Airports

Focus now on Kolkata and Chennai airports.

• Kolkata airport to be modernized in PublicSector by the state owned Airports Authority of India – Project span by March 2010 – Investment US$ 340 million

• Chennai airport : Modernization under activeconsideration; all options open.




Greenfield Airports



Greenfield Airport –Hyderabad

Financial closure on 22nd Aug. 2005

Work likely to be completed by Mar.2008

Consortium - GMR Infrastructure Ltd.

with Malaysian Airport Holding Berhard

(MAHB) 74%

Govt. of Andhra Pradesh + AAI 26%

Estimated Investment US$ 390 million



Greenfield Airport –Bangalore

Financial closure on 23rd June 2005

Work likely to be completed by Apr. 2008

Consortium - Siemens, Germany, Unique Zurich,

Switzerland and - L&T India Limited 74%

Karnataka State Industrial Investment Development

Corporation (KSIIDC) + AAI 26%

Estimated Investment US$ 428 million



• Kannur (Kerala)

• Mopa (Goa)• Halwara (Punjab)

• Chakan (Pune,Maharashtra)

• Navi Mumbai (Maharashtra)

New GreenfieldAirport Proposals



Navi MumbaiAirport

Mumbai Airport, even on restructuring & modernisation,to saturate by 2013.

Therefore an additional airport planned for Mumbai ( at

Navi Mumbai) under PPP mode.

Development in Four Phases.

Total Project Cost : US$ 2.4 Billion

Phase 1 Project cost : US$ 1.0 Billion

Targeted operation by : 2012-13

Design capacity : 40 MPPA




Regional Airports



Regional (Non-Metro)Airports

AAI has undertaken an ambitious programme of developing select 35non-metro airports.

IMPORTANT FOR REGIONAL CONNECIVITY AND DEVELOPMENT OFREGIONAL HUBS.

PLACES OF MAJOR TOURIST ATTRACTION COVERED.

BUSINESS HUBS COVERED.

PROJECT SPAN – NEXT 3 YEARS. WORK ON MANY OF THESE HASBEGUN.

INVESTMENT REQUIRED- US $ 1.3 Billion.

CITY SIDE DEVELOPMENT (land use plans), through PPP modeEstimated Investment US $ 357Million.



InvestmentOpportunities

• Indian aviation growing at a spectacular pace.

• Investment opportunities- US $ 110 billion by 2020 – New Aircraft US $ 80 billion – Airport Infrastructure US $ 30 billion

• Other areas-

MROs - Steady induction of new aircraft- Potential to become regional Maintenance Hub- Investment of US $ 100 million each already

committed by Boeing and Airbus.

Training - Huge demand for trained manpower - Upgradation of IGRUA.- New Flying Training Institute at Gondia



InvestmentOpportunities

• Strategy for development : Mixed i.e. – Public Sector, – Public Private Participation, and

– Private Sector

• Thus opportunities for all – Airport Developers – MROs

– Commercial Lenders – Equity Funds – Multilateral Agencies – Bilateral Donors



Thank You



• 35 Non Metro Airports



• 35 Non Metro Airportsidentified for development are

Ahmedabad, Amritsar, Agatti,Aurangabad, Agartala, Agra,

Baroda, Bhopal, Bhubaneshwar,Chandigarh, Coimbatore,Dehradun, Dimapur,

Goa (Dabolim), Guwahati,Imphal, Indore,Jaipur, Jammu,Khajuraho,

Lucknow,Madurai, Mangalore,Nagpur,

Patna, Portblair, Pune,Rajkot, Ranchi, Raipur,Trichy, Trivandrum,Udaipur,VisakhapatnamVaranasi

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