Airport Privatisation in India
Airport Privatisation in India
Airport Privatisation in India
Contents
Risk factors
A privatisation of this size will give rise
to a number of commercial and legal
issues which bidders need to consider
very carefully.
The general legislative framework
governing airports in India is
embodied in three pieces of legislation:
the Airports Authority of India Act,
1994 (as amended) (the "AAI Act"), the
Aircraft Act 1934 (as amended) and the
Aircraft Rules 1937 (as amended).
The newly-amended AAI Act appears
to give sufficient authority to the
Government and the Airports
Authority to establish public-private
joint ventures of the type
contemplated, although the exact
terms of the AAI Act will need to be
Conclusion
For the potential investor, there are
without doubt unique opportunities in
the Indian airports sector, but these
are not risk-free. In what will be a
complex process, there are a number
of very different considerations that
will need specialist advice. It is
therefore vital that the investor's legal
and commercial teams are not only
familiar with the transport sector and
the privatisation process, but also have
experience of domestic and foreign
laws enabling them to anticipate and
deal with the complexities and to
facilitate effective project planning.
Stop press
On 17 February 2004 the Airports
Authority of India invited the private
sector to submit expressions of
interest for the privatisation of Delhi
and Mumbai airports. Interested
parties are required to respond by
4 June 2004.
The Government plans to have a twostage selection process. The first stage
involves the issue of the "Invitation to
Register an Expression of Interest". In
This briefing is not intended to be a comprehensive review of all developments in the law and practice, or to cover all aspects of those referred to.
Readers should take legal advice before applying the information contained in this publication to specific issues or transactions.
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