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    Civil Aviation: Private Participation

    Uploaded by

    Ramashish Yadava
    The document discusses the development of civil aviation infrastructure in India through private participation and public-private partnerships. It outlines the government's plans to modernize major metro airports in Delhi, Mumbai, Bangalore, and Hyderabad through private entities, while developing Kolkata and Chennai airports through the Airports Authority of India. It also discusses plans to modernize 35 non-metro airports and develop new greenfield airports through public-private partnerships. Additionally, it identifies various risks involved in aviation sector projects, such as project completion risks, technology risks, market risks, financial risks, and external risks beyond the project developers' control.

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    Civil Aviation: Private Participation

    Uploaded by

    Ramashish Yadava
    17 views6 pages
    The document discusses the development of civil aviation infrastructure in India through private participation and public-private partnerships. It outlines the government's plans to modernize major metro airports in Delhi, Mumbai, Bangalore, and Hyderabad through private entities, while developing Kolkata and Chennai airports through the Airports Authority of India. It also discusses plans to modernize 35 non-metro airports and develop new greenfield airports through public-private partnerships. Additionally, it identifies various risks involved in aviation sector projects, such as project completion risks, technology risks, market risks, financial risks, and external risks beyond the project developers' control.

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    aiation

    Original Title

    Aviation

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    The document discusses the development of civil aviation infrastructure in India through private participation and public-private partnerships. It outlines the government's plans to modernize major metro airports in Delhi, Mumbai, Bangalore, and Hyderabad through private entities, while developing Kolkata and Chennai airports through the Airports Authority of India. It also discusses plans to modernize 35 non-metro airports and develop new greenfield airports through public-private partnerships. Additionally, it identifies various risks involved in aviation sector projects, such as project completion risks, technology risks, market risks, financial risks, and external risks beyond the project developers' control.

    Copyright:

    © All Rights Reserved
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    17 views6 pages

    Civil Aviation: Private Participation

    Uploaded by

    Ramashish Yadava
    The document discusses the development of civil aviation infrastructure in India through private participation and public-private partnerships. It outlines the government's plans to modernize major metro airports in Delhi, Mumbai, Bangalore, and Hyderabad through private entities, while developing Kolkata and Chennai airports through the Airports Authority of India. It also discusses plans to modernize 35 non-metro airports and develop new greenfield airports through public-private partnerships. Additionally, it identifies various risks involved in aviation sector projects, such as project completion risks, technology risks, market risks, financial risks, and external risks beyond the project developers' control.

    Copyright:

    © All Rights Reserved
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    of 6

    1

    CIVIL AVIATION

    Private Participation

    i. Development and modernization of Metro airports

    Keeping in the line with its policy of liberalisation, the Government has decided to modernise the
    major international airports and attract private participation in order to induct the much needed
    capital for expansion and modernisation of metro airports to world class standards.

    Four metro airports at Delhi, Mumbai, Bangalore and Hyderabad are being developed and
    operated by private entities through PPP concessions.

    Kolkata and Chennai are being developed by the Airports Authority of India (AAI).





    ii) Development and Modernisation of Non-metro airports

    The Government has decided to modernise 35 non-metro airports to world class standards.

    The runways, terminal buildings and equipment are being upgraded by AAI as part of this
    initiative.

    The city- side development of these airports would be undertaken through various forms of Public
    Private Partnerships.

    iii) Greenfield Airports

    The policy of Greenfield Airports was approved by the Government in April 2008 to enable
    greenfield airports to be set up on PPP basis. Foreign Direct Investment up to 100 per ent is
    permitted through automatic approvals.

    Planning Commission has developed a Model Concession Agreement for greenfield airports to
    enable the State Governments to take up the development of such airports through PPP.



    2
    AVIATION SECTOR
    Risks Risk Factors
    PROJECT
    COMPLETION
    RISK
    Project Completion Risk: Completion within Schedule &
    Budgeted Cost
    Assured Supply of Construction Inputs
    Land Acquisition
    Required Regulatory Clearances
    Quality of Workmanship
    Environmental Compliance
    TECHNOLOGY
    RISKS
    Cost & Time Comparison with other similar projects
    Risks with New/Unproven Technology
    Infrastructure Support for Construction
    Availability of Raw Materials @assured cost
    Availability of Utilities Power, Water etc.
    AVIATION SECTOR
    Risks Risk Factors
    MARKET RISKS
    Market Capacity & Potential
    Cyclicality / Recessionary Trends in Demand
    Competition from New Entrants
    Price Risk: volatility, Product Price Depreciation
    Break through technologies causing Technological
    Obsolescence
    Change in user preferences; Product Quality
    LEGAL RISKS
    Collateral & Security strongly enforceable
    Structure of Arbitration Mechanism
    AVIATION SECTOR
    Risks Risk Factors
    FINANCIAL
    STRNGTH
    Project Debt: Equity (Norm Maximum of 3.275)
    Project DSCR (Norm Minimum of 1)
    Project LLCR (Norm- Minimum of 1.1)
    TOL / TNW #
    Contingent Liabilities
    Foreign Exchange Risk
    CORPORATE
    GOVERNANCE,
    MANAGEMENT
    QUALITY
    Transparency in Related Party Transactions
    Management: Track Record & Competence, Succession Issues
    Financial Discipline: Strict Control on Cash Flows
    Strict Control on more borrowings
    Accounting Quality: Revenue Recognition, Depreciation
    policies, etc.
    AVIATION SECTOR
    Risks Risk Factors
    PROJECT
    EXTERNAL
    RISKS
    Risks due to acts/policies of the Government
    Risks arising due to change in Taxation policies / custom duty
    changes
    Risks arising due to external factors like WTO, Global Economic
    Changes, etc.
    Claims arising due to Operating Accidents
    Risks of Disruption due to Labour Trouble, Force Majeure
    Events, etc.

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