Page 105 - ITU-T Focus Group Digital Financial Services – Executive Summary

Multilateral agencies provide financial and advisory support to infrastructure projects. They act as a
stable source of long-term funds and knowledge base with strong PPP experience. They extend
technical assistance (TA) to the governments to help them bring PPPs to the mainstream at the
centre and state level through capacity building, e.g., establishing PPP cells in various states. Over
the years, they have come up with new ways of providing financial assistance for infrastructure
development, such as through multi-tranche financing facilities and local currency loans.
This type of solution in PPP funding of the airports is replicable
Key upcoming PPP projects are:
• Seven greenfield airports in Andhra Pradesh: New airports will be developed through the PPP mode
and will entail a private investment in the range of INR10 billion–INR20 billion each. The Government
will also offer concessions, including land, water, power and approach roads.
• Six greenfield airports in Maharashtra: The Government plans to build one international airport at
Ckan (INR71 billion) and five domestic airports at Solapur (INR3.1 billion), Amravati (INR2.8 billion),
Shirdi (INR2.6 billion) and Jalgaon (INR2.6 billion) on PPP basis.
• International airport in Uttar Pradesh: The Government of Uttar Pradesh plans to develop an
international airport at Kushinagar worth INR3.5 billion through Design, Build, Finance, Operate,
Transfer (DBFOT).
• International airport in Mopa, Goa: The Government of Goa plans to develop its airport with an
investment of INR30 billion over the next four years on PPP basis.
• Greenfield international airport at Navi Mumbai: The new airport is being built through PPP and the
cost of the project is estimated to be between INR32 billion and INR40 billion.

2.3 Results
Government’s focus on PPP has borne exceptional results during the Eleventh five year plan. It is also
observed that the private sector has played an unprecedented role in the area of airport development. Five
international airport projects were successfully completed through the public–private partnership (PPP)
mode, viz. greenfield development of Hyderabad and Bengaluru international airports and modernization of
Kochi, Delhi and Mumbai international airports. Total investment made by private airport operators in the
last five years was to the tune of US $ 6 Billion. In recent years, airport modernization in the country has
taken a new form, with private players bringing in new technologies that not only improve airport operations
but also enhance customer experience.

These projects have had an impact also on the Gross State Domestic Product (GDSP).National Council of
Applied Research’s (NCAER) study of the Hyderabad and Delhi Airport has shown that Hyderabad Airport’s
operations contributed 1.25 billion USD to the national GDP in 2009-2010; contribution relative to the State’s
(AP) GSDP was 1.55%. Similarly, Delhi Airport’s operations contributed about 5. billion USD to the national
GDP in 2009-10; contribution to the State’s (Delhi) GSDP was 13.35 %.

Job Multiplier Effect:With the Airport – centric approach of urban development, gainful employment has
been generated to the tune of 1.57 million in the case of Delhi Airport (representing 25.9% of Delhi’s total
employment) and 840,000 jobs in the case of Hyderabad Airport.
Service Levels and improvements-Knock-on effects on government run airports and international rankings
of Indian airports: PPP airport projects have consistently been ranked at the top of the Airports Council
International’s (ACI) Airport Service Quality (ASQ) rating for the Best Service Delivery in their respective
categories. This drive, and focus on the quality has raised the bar for the Indian aviation industry; the new
terminals developed by the Government; and its service levels, having been at par with the international
standards, as envisioned by the Indian Government.
Fulfilling the state responsibility of Connectivity and Access to air travel: Freeing up of public funds, has
enabled the Government to focus on regional connectivity and the development of smaller airports which
were earlier underserved or unserved, across the nation. This has enabled the State to fulfill their
responsibility towards bringing access to air travel for every citizen.

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