3. Examine the
developments of Airports in India through Joint Ventures under Public-Private
Partnership (PPP) model. What are the challenges faced by the
authorities in this regard? (150 words) 10M
- Aviation sector in the last two decades has been given major emphasis. In this sector for the development of airports mainly the method of joint ventures under PPP was adopted. Major airports in the cities like Delhi, Mumbai, Hyderabad etc were being constructed with this model with the private construction company like GMR Infra. All these airports are world class in terms of their services and management mainly due to the paticipation of private sector.
- However the authorities have also faced many challenges in the execution of these PPP projects.
- The major issues are related to concession
- agreement, tariff fixation, absence of re-negotiation in between the project, poor division of risk on the government and the private sector, poor surveys and data gathering for forecasting the traffic.
- Despite these issues, India's modern airports are admired by the international experts as well. In the new aviation policy also the government has envisaged to develop the regional airports through the regional connectivity scheme (UDAN) under the PPP structure only.
- However in this arena, the suggestions in the report of Kelkar Committee on PPP reforms should be implemented to increase the efficiency of the construction work with less conflicts.