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Business opportunities in India

The Government aims to attract private investment in aviation infrastructure

- Privatisation of the Delhi and Mumbai airports is in progress – concessions have already been awarded. Expected investment of about Rs.15,700 crores (US $ 3.5 billion)

- New international airports at Bangalore and Hyderabad are being built by private consortia with a total investment of about Rs.4000 crores (US $ 600 million)
- 25 other city airports are being considered for private investment
Modernization and Upgradation of airports in India will expected US$ 40 billion investment in the next ten years.
Indian private airlines – Jet, Sahara, Kingfisher, Deccan, Spicejet - account for around 60% of the domestic passenger traffic. Some have now started international flights


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 privatisation
 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.
Development of airport infrastructure is a
focus area for the Government

There has been a significant uptrend in domestic
and international air travel

The Government is taking steps to increase participation by private industry

   Major opportunities lie in:
- Modernisation / upgradation of metro airports – induction of partners for Chennai, Kolkata expected subsequently

- Greenfield airport projects planned in resort destinations and emerging metros such as Goa, Pune, Navi Mumbai, Greater Noida and Kannur.

In greenfield airports 100% foreign investment is allowed.
The government is planning to privatize the operation and management of the four international airports at Delhi, Mumbai, Chennai and Kolkata to private operators. These airports handle significant amounts of both passenger and cargo traffic. Projections show that traffic is likely to increase steeply at these airports
Private sector participation is also allowed in airport modernization, ground services, and aircraft manufacture