Page 104 - ITU-T Focus Group Digital Financial Services – Executive Summary

2.2 Implementation

The Projects have been implemented in the PPP mode.
Policies and strategies that made it possible

The Ministry of Civil Aviation, Government of India, has taken steps to improve the regulatory environment
in the country. The Ministry has come up with a new civil aviation policy (Vision 2020) which facilitates the
establishment of a new Civil Aviation Authority. Some of the recent policy initiatives implemented are as
follows:
• FDI investment in civil aviation: In September 2012, an amendment was made in the Civil Aviation
policy that allowed foreign airlines to take equity share in the operating scheduled air transport
services, subject to a limit of 49% of their paid-up capital.
• New aviation regulator: A new bill is expected to be introduced in the Parliament to establish a new
regulator, to be called the Civil Aviation Authority (CAA) replacing the Directorate General of Civil
Aviation (DGCA). It will have full operational and financial autonomy.
• PPP mode for airport development: PPP mode will enable privatisation and modernisation of
airports in metro as well as non-metro cities, and will give priority to the development of regional
and remote connectivity in the country.
• Simplification of building rules near the airport: The Government has approved changes in the
bylaws regulating building activities around airports. The changes are expected to bring increased
transparency and efficiency in the processes of approval for construction of buildings around
airports.
The Stakeholders in the process:
• The Government of India

• The State governments
• The Private Sector Enterprises
• Financial Institutions of India
• Foreign Direct Investors

Enablers that made it happen:
• Efficient Leadership of the Central Government
The Central Government’s commitment to provide a solution to the resource constraint enabled
this process
• Governance (within the city and across all levels of government)
The local City and State Governments were also taken on board;
• Financial (e.g. PPP, risk management)
The Financial Institutions came forward to assist with the process. This coupled with the policies of
the government ensured risk mitigation, which in turn helped in boosting the confidence of the
private enterprises who then willing joined this collaboration.
The contributions of multilateral agencies, such as World Bank, Asian Development Bank (ADB) and
Department for International Development (DFID) in infrastructure development play a key role in
improving the investment climate and fostering private sector participation. There has been a shift
in the funding pattern of multilateral agencies from public sector infrastructure projects to projects
having private sector participation. These agencies give priority to environment-friendly
infrastructure projects.

100 U4SSC series