India has been an enthusiastic supporter of the Public Private Partnership (PPP) model in recent years and numerous infrastructure projects have been conducted through this model. Being the third largest aviation market in the world has put significant pressure on the development of Indian airports and the PPP model has been adopted in many airport projects, both greenfield and brownfield. Since the use of the PPP model to develop the Greenfield Cochin International Airport in 1994, there are now 14 operational PPP airports in India. More PPP airport projects are planned as per the National Monetisation Pipeline, which states that 25 airports currently operated by the Airports Authority of India are earmarked for leasing between 2022 and 2025.In light of this, it becomes crucial to evaluate the operations and governance of these long-term projects. The importance of the analysis is compounded by the fact that in the financial year 2022–2023, only 3 of these PPP airports made a profit. Many other PPP airports made significant losses and some airport PPP projects have failed to materialise. Here, the author considers some of the differences between various PPP airports in India, both profit and loss making and highlights the potential governance concerns that arise and potential ways to resolve them. These include prior resolution of land allocation issues, a fair and transparent tendering process and the appropriate designing of PPP contracts with sufficient flexibility, clarity of scope and dispute resolution mechanisms.

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An Evaluation of the Public Private Partnership Model in the Governance of Indian Airports

  • Anuradha Roy Chowdhury

摘要

India has been an enthusiastic supporter of the Public Private Partnership (PPP) model in recent years and numerous infrastructure projects have been conducted through this model. Being the third largest aviation market in the world has put significant pressure on the development of Indian airports and the PPP model has been adopted in many airport projects, both greenfield and brownfield. Since the use of the PPP model to develop the Greenfield Cochin International Airport in 1994, there are now 14 operational PPP airports in India. More PPP airport projects are planned as per the National Monetisation Pipeline, which states that 25 airports currently operated by the Airports Authority of India are earmarked for leasing between 2022 and 2025.In light of this, it becomes crucial to evaluate the operations and governance of these long-term projects. The importance of the analysis is compounded by the fact that in the financial year 2022–2023, only 3 of these PPP airports made a profit. Many other PPP airports made significant losses and some airport PPP projects have failed to materialise. Here, the author considers some of the differences between various PPP airports in India, both profit and loss making and highlights the potential governance concerns that arise and potential ways to resolve them. These include prior resolution of land allocation issues, a fair and transparent tendering process and the appropriate designing of PPP contracts with sufficient flexibility, clarity of scope and dispute resolution mechanisms.