- 10% Quota for general category
- NITI Aayog proposes all India Judicial Service Examination
- CAG Report on government spending
- Need for Citizenship (Amendment) Bill
- Clause 6 of Assam accord : indepth analysis
- Collegium system for appointment of judges
- Fear of Executive Courts
- Tamilnadu Reservation Policy
Governance & Social Justice
- Bhasha Sangam Program : Celebration of Linguistic Diversity
- Cabinet approves revision in list of scheduled tribes of Arunachal Pradesh
- Does India need a coal commission?
- Concerns in Ayushman Bharat
- Depression at workplaces : A major health issue in India
- How to bridge Gender gap in India : Mckinsey Global Institute Report
- Government plans to rename Indian Forest Service
- IGOT Program for Competent Civil Services
- Indian Medical Council Amendment Bill 2018
- National Commission for Indian Systems of Medicine and Homoeopathy
- Government bats for National Medical Devices Promotion Council
- Parental consent for vaccination
- India Signs Agreement with OECD for PISA 2021
- Kerala’s wall of resistance
- Should an IAS officer use Social Media?
- Social media addiction
- Legal Status for SSC
- Tripal Talaq Bill 2018
- Web Wonder Women Campaign by Ministry of WCD
- West Bengal Leaves Ayushman Bharat : In-depth Analysis
- Why Asian Infrastructure Investment Bank Is Important For India
- What Is The Asia Reassurance Initiative Act
- E-Passport for Indians
- What Is G-77
- Failed Coup In Gabon
- Bagladesh Election
- Powering South Asian Integration
- ISRO’S New Station In Bhutan
- Kenya Replace Pictures Of Leaders on Coins With Animal
- Macedonia Name Change
- Why Norway Is Important For India
- Why India Need Membership Of NSG
- Pakistan Declared A Hindu Temple A Heritage Site
- Raisina Dialogue 2019
- India’s Republic Day Guest
- India To Take Over Sittwe Port Operation In Myanmar
- U.S. Mexico Border
- US Government Shutdown
- US Venezuela Crisis
- What is Angel Investment?
- Byorung Bridge
- India’s Airport Privatization Plan
- Rationalisation of GST Rates
- 1st Advance Estimates of Economic Growth by CSO
- Democracy Index 2018
- E-DRISHTI Software by Ministry of Railways
- What is GAFA tax
- Ganga Expressway to be Built in UP
- Green-Ag Project launched by India with UN FAO
- Issue of Tax Evasion under GST
- Improvements under GST Regime
- ICAT Certification for Automobilies
- What is Indian Bridge management System?
- Draft Information Technology Amendmenet Rules 2018
- Jamrani multipurpose DAM Project
- What is KALIA Scheme?
- MANDAL DAM
- Mega Merger!
- MSP for minor forest produce
- NITI Aayog suggestions on farm Economy
- India’s first vertical-lift Bridge
- Paradip Hyderabad pipeline
- Measures to address issues in Sugar industry
- Capital infusion in PSBs
- Renukaji dam
- PM Modi inaugrates Rice Research Institute
- Section 74 of the insolvency and Bankruptcy Code
- Social & Environmental Cost of Building dams
- Solar feeder Maharashtra model
- RBI Tokenisation
- Sikkim-Universal basic income
- Global Risks Report 2019
Science & Technology
- Why Beech Trees Dying
- Beat Plastic Pollution Resolve by India
- Why USA Is Killings California Sea Lions
- Carbon Tax
- China’s War On Particulate Air Pollution Is Causing More Serve Ozone Pollution
- CITES Washington Convention
- Coastal Regulation Zone
- Melting Ice Sheets And Release Of methane
- National Clean Air Programme Feature &Critical Analysis
- Oceans Are Heating Up 40% Faster Than Previous Estimates
- Revival Of Iran’s Lake Urmia
- India submitted sixth national report to Convention on Biological Diversity
- How Wild Fire Affect crop and vegetation Production
- NITI Aayog’s SDG Index
Spice of the Month
- GS 3 || Economy || Infrastructure || Transportation
Why in News?
- has proposed a plan to privatize 6 Airports of India in order to improve the air travel scenarios and to invite investments.
Six Airports Privatization
- Six Airports
- are currently run by the Airports Authority of India (AAI) are up for bidding for the privatization.
- Last date for submission of bids is 14 February and the letter of award will be issued on 28 February.
- Redevelopment of these airports may attract investments worth $1.4 billion, according to JagannarayanPadmanabhan, director and practice leader, transport and logistics, Crisil Infrastructure Advisory.
- Each of the six airports roughly needs private investment of $200 million.
- It will be in the range of $1.2-1.4 billion that will come into the airport sector
- Interested Entities:
- Flughafen Zurich AG – Switzerland
- Changi – Singapore
- AviAlliance – German
- GIP – USA financial investors
- AMP Capital – Sydney, Australia Based
- Among Indian companies,
- Anil Ambani’s Reliance Infrastructure,
- National Investment and Infrastructure Fund
- Adani group,
- Indian airport operators GVK GMR,
- are likely to participate in the bidding.
- At present, 5 airports, operate under the PPP model:
- Which helped create world-class airports, but also helped AAI in enhancing its revenues and focusing on developing airports and air navigation infrastructure in the rest of the country
- In the first round of airport privatizationundertaken , a concession period of 50 years to the winning bidder, instead of 30 years.
- Responsibilities: The concessionaire shall bear the responsibilities for operations and management of existing airport assets as well as for designing, engineering, financing, construction and development of the additional air-side, terminal, city-side and land-side infrastructure for the airport.
- The winning bid will be decided on the basis of the highest monthly per-passenger fee to AAI, again a departure from the much-contested revenue-sharing model that AAI adopted in the existing privatized airports.
So far with Privatization in Airport Industry
- India’s experience so far with airport privatization has been mostly positive.
- Delhi, Mumbai, Bengaluru and Hyderabad are making a positive output in their private sector owners.
- Even the six that are now up for privatization are all profitable and have been giving more than 10% compound annual growth rate over the last 4-5 years. Besides this, Jaipur and Ahmedabad are in need for capacity elevation.
- Given the rapid airline passenger growth in India, capacity is being breached in multiple airports. So there is a definite business case for multiple airport developers and investors to take a positive view on the privatization proposal.
- Privatization plan will depend on how much freedom operators get in managing airports, something that has often been a bone of contention.
- Private investors are supposed to seek more clarity on whether the government will make land available for expansion, the exit process and how favourable it is to them, ease of operations and the freedom that private party is given in operations and the fitness and transparency of data on current health of the airports that is given to them.