Lok Sabha Question No. 2657 (UNSTARRED), answered on 2022-03-17
Subject: Private Investment in Civil Aviation Sector
Ministry: CIVIL AVIATION
Asked by: Ramya  Haridas

## GOVERNMENT OF INDIA

UNSTARRED QUESTION NO. 2657 (To be answered on the March 2022) 17th

## MINISTRY OF CIVIL AVIATION LOK SABHA

## PRIVATE INVESTMENT IN CIVIL AVIATION SECTOR

2657.

MS. RAMYA HARIDAS

Will the Minister of CIVIL AVIATION

- (6) if s0, the details thereof;

be pleased to state:-

- into India's civil aviation infrastructure including in Kerala to reforms in Civil Aviation sector; bring
- whether any efforts have been made s0 that the private sector, including of Indian airportssthrough various public-private partnership (PPP) models, allotments; and other incentives which would to produce world-class airports in various cities in the country; tax; help-
- (e) the extent to which these steps have been successful?

## ANSWER

Minister 0f State in the Ministry of CIVIL AVIATION

(GEN, (DR) V. K SINGH (RETD))

() & (b): Ministry % Civil Aviation (MoCA) has taken various steps to attract investments from private investors for development of airport (AAI) in the years 2018-19, awarded six airports namely, Ahmedabad, for Operations, Management and Development for & period of 50 years under Public Private Partnership (PPP) mode. Besides; MoCA has granted in Pakyong, Kannur, Kalaburagi, Oravakal and Kushinagar haye been operationalized. has;

Government has recently completed the process of strategic disinvestment of

- (d) if s0, the details thereof; and

100% stake of Government of India in Air India along with 100% stake in Air India Express Ltd (AIXL) and 50% stake in Air India SATS (AISATS)

- (c) to (e): Government of India has permitted 100% Foreign Direct Investment (FDI) in Greenfield and Brownfield airport projects under the FDI Policy: Further, Government of India has made several efforts in the form of policy decisions which inter-alia include adopting Per Passenger Fee (PPF) as bidding parameter instead of earlier revenue share system and away with the prior experience of operating 0f airport as a prerequisite for bidding These initiatives have created an enabling environment for attracting private investors; including foreign investors, to take up airport projects in activities  such as one to one dialogue with the investors, roadshows, advertisements giving wider publicity etc Moreover, State Governments also play a major role in attracting investment from the private sector by providing various incentives such as leasing of land at concessional connectivity to airport, fiscal incentives by Way of exemption from State taxes; real estate development rights, availability of uninterrupted water & electricity supply, security around airport etc doing rate,

As a result; a number of airports in the country are run by the private airport operators, including foreign players: These inciude airports at Delhi; Mumbai; Guwahati; Thiruvananthapuram, Cochin,Durgapur, Sindhudurg and Kannur; In addition, construction of new Greenfield airports at jewar (Noida), Mopa (Goa) and Navi Mumbai (Mumbai) has been undertaken by the private developers to usher in private investment into civil aviation sector in the country; Jewar Airport Project has been awarded to a foreign company namely Mls Zurich Airport International AG which has formed a Special Purpose Vehicle (SPV) -Yamuna International Airport Private Limited (YIAPL) for the airport development: