Lok Sabha Question No. 161 (STARRED), answered on 2016-07-28
Subject: Investment in Development of Airports/Airstrips
Ministry: CIVIL AVIATION
Asked by: FEROZE VARUN GANDHI

## GOVERNMENT OF INDIA MINISTRY OF CIVIL AVIATION LOK SABHA

(To be answered on the July 2016) 28th

STARRED QUESTION NO: : 161

## INVESTMENT IN DEVELOPMENT OF AIRPORTSIAIRSTRIPS

*161. SHRI FEROZE VARUN GANDHI

## Will the Minister of CIVIL AVIATION

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be

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pleased to state: -

- (a) whether have been worked out to develop 160   airports and airstrips in tier II cities as announced in Union Budget 2016-17, and if ~SO, the details thereof along with names 0f such airports/airstrips;
- (c) if not, the other funding mechanism being considered for the development of these airports in the coun try;
- (b) whether the Government has envisaged Public-Private-Partnership (PPP) Model to fund these airports and airstrips, and if s0, the details thereof;
- (d) the details %f companies which have evinced keen interest in the development of the airport   projects along with the Foreign Direct Investment (FDI) proposals received in the civil aviation sector during the last three years, year-wise; and
- (e) the cost benefit analysis undertaken for the development of these airports and the steps taken to attract low cost carriers in these small airports?

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Minister of CIVIL AVIATION

## ANSWER

(Shri Ashok Gajapathi Raju Pusapati)

(a) to (e): A Statement is laid on the Table of the House.

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- Statement in reply to part (a), (6), (c), (d) & (e) of the Lok Sabha Starred Question No. 161 for 28.07.2016 regarding 'Investment in Development of Airports/Airstrips' \_
- (2): Ministry of Civil Aviation (MOCA) has drafted the modalities for developmentfupgradaticn of airports in tier-II & tier-III cities %f the country as a part of regional connectivity scheme under National Civil Aviation Policy: 2016. During the next three years; the Scheme envisages to revive 50 unserved/under-served airportsairstrips of State Government at an estimated cost of Rs. 4650 crores through budgetary support MOCA has forwarded an Expenditure Finance Committee (EFC) Memorandum for appraising the budgetary support of Rs: 4650 crores Airports Authority %f India has been designated a8 the implementing authority of the scheme. identification of airports/airstrips for revival is to be "demand driven" depending on firm demand from the airline operators and where the State Government agrees to provide various concessions envisaged in the Policy
- (b) & (c): The National Civil Aviation Policy, 2016 envisages promotion of regionai connectivity by way of revival of un-served and under-served airportslairstrips through various financing means including by way of Public Partnership Project (PPP):
- (d): Civil Aviation sector has attracted inflows of foreign investments during the last three years viz. preferential allotment of 24% of equity share Asia Investment Limited (AATL; a company incorporated under the Laws of Malaysia) 48.951%, Tata Sons Limited (TSL) 30.019% and Telestra Tradeplace Pvt: Ltd. (Telestra) 21.028% in the name of Air Asia (India) Pvt: Ltd. (ii) Joint Venture by Tata Sons Ltd. (51%) and Singapore Airlines Ltd; (49%) in the name of TATA SIA (iv) sale of stake in Bangalore International Airport Ltd by GVK Airport Holdings Limited to Fairfax India for Rs 2,149 crore. Further, in case Of two major new airport projects in the country, Government of Maharashtra and Government of Goa are the project proponents 0f Greenfield airports at Navi Mumbai (Maharashtra) and Mopa (Goa) respectively under Public Private Partnership (PPP) mode. Request For Qualification (RiFQ) stage has been completed at both the airports wherein some of the qualified bidders have venture with foreign investors paid
- (e): The National Civil Aviation Policy, 2016 envisages to take flying to the masses by making it affordable and convenient: To promote this objective; the Policy provides for Regional Connectivity scheme by way of upgration/development of no-irills airports and Viability Funding (VGF) to the airlines operating to these airports based on demand: Gap

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