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Of a total number of 454 airports and airstrips in India, 16 are designated as international airports. The Airports Authority of India (AAI) owns and operates 97 airports. A recent report by Centre for Asia Pacific Aviation (CAPA), Over the next 12 years, India's Civil Aviation Ministry aims at 500 operational airports. The Government aims to attract private investment in aviation infrastructure. India has been witnessing a very strong phase of development in the past few months. Many domestic as well as international players are showing interest in the growth and development of the aviation sector with immense focus on the development of the airports. Indian private airlines � Jet, Sahara, Kingfisher, Deccan, Spicejet - for around 60% of the domestic enger traffic. Some have now started international flights. For the next years to come India is poised with strong focus on the development of its airport to meet the international standards. The government is planning modernization of the airports to establish a standard. The newly developed airports will help releasing pressure on the existing airport in the country. Plans A projected investment of USD 8.5 billion has been planned for the development of Indian airports during the 11th plan. Mumbai and Delhi airports have already been privatized. These two airport are being upgraded at an estimated investment of US$ 4 billion for the period 200616. Development of airport infrastructure is a focus area for the Government. There has been a significant uptrend in domestic and international air travel. AAI has planned a heavy investment of USD 3.07 billion over the next five years. Out of it 43 per cent will be for the three metro airports in Kolkata, Chennai and Trivandrum. The rest will be invested in upgrading other non-metro airports and in the modernization of the existing aeronautical facilities. enger traffic is projected to grow at a CAGR of over 15% in the next 5 years. It is estimated that the data will cross 100 million engers per annum by 2010 Cargo traffic to grow at over 20% per annum. over the next five years, crossing 3.3 million tonnes by 2010 Major investments planned in new airports and up gradation of existing airports 100% FDI is permissible for existing airports; FIPB approval required for FDI beyond 74%. 100% FDI under automatic route is permissible for greenfield airports. 49% FDI is permissible in domestic airlines under the automatic route, but not by foreign airline companies. 100% equity ownership by Non Resident Indians (NRIs) is permitted. AAI Act amended to provide legal framework for airport privatization. 100% tax exemption for airport projects for a period of 10 years. �Open Sky� Policy of the Government and rapid air traffic growth have resulted in the entry of several new privately owned airlines and increased frequency/flights for international airlines. Initiatives The Committee on Infrastructure has initiated several policy measures that would ensure timebound creation of world-class airports in India. A comprehensive civil aviation policy is on the anvil. An independent Airports Economic Regulatory Authority Bill for economic regulation is also under consideration. The policy of open skies introduced some time ago has already provided a powerful spurt in traffic growth that has exceeded 20% per annum during the past two years. Major airports such as Chennai and Kolkata are also proposed to be taken up for modernization through the PPP route. To ensure balanced airport development around the country, a comprehensive plan for the development of other 35 non-metro airports is also under preparation. These measures are expected to bring a total investment of Rs. 40,000 crore (USD 8.312 billion) for modernization of the airport infrastructure. A Model Concession Agreement is also being developed for standardizing and simplifying the PPP transactions for airports, on the analogy of the highways sector. This would include upgrading of the ATC services at the airports. Issues relating to customs, immigration and security are also being resolved in a manner that enhances the efficiency of airport usage. converted by Web2PDFConvert.com

A greenfield airport is already operational at Bangalore and the one at Hyderabad, built by private consortia at a total investment of over USD 800 million, will be operational soon. A second greenfield airport being planned at Navi Mumbai is planned to be developed using public-private partnership (PPP) mode at an estimated cost of USD 2.5 billion. 35 other city airports are proposed to be upgraded through PPP mode where an investment of USD 357 million is being considered over the next three years. Potential High demand for investments in aviation infrastructure. Favorable demographics and rapid economic growth point to a continued boom in domestic enger traffic and international outbound traffic. Greenfield airport projects planned in resort destinations and emerging metros such as Goa, Pune, Navi Mumbai, Greater Noida and Kannur. International inbound traffic will also grow rapidly with increasing investment and trade activity and as India�s rich heritage and natural beauty are marketed to international leisure travelers. Modernisation / upgradation of metro airports � induction of partners for Chennai, Kolkata expected subsequently SME lending, a largely untapped market, presents a significant opportunity. This s for 40% of the industrial output and 35% of direct exports. Airport Statistics 2006-07 Airport

Average no. of engers (Per Day)

Mumbai

20128

Delhi

18228

Chennai

7934

Bangalore

3455

Hyderabad

3327

Kolkata

2206 Source: Director General of Civil Aviation, AAI

Opportunity

There has been a significant uptrend in domestic and international air travel Outlook enger traffic is projected to grow at a CAGR of over 15% in the next 5 years To cross 100 million engers p.a. by 2010 Cargo traffic to grow at over 20% p.a. over the next five years To cross 3.3 million tonnes by 2010 Major investments planned in new airports and upgradation of existing airports For additional information: "Ministry of Civil Aviation (http://civilaviation.nic.in)". Airport Authority of India (http://www.airportsindia.org.in/aai/main.htm) Content Source: www.infrastructure.gov.in

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