Ministry of Civil Aviation Government of India

1. Airports Infrastructure : The Business Opportunities Ministry of Civil Aviation Government of India

2. Structure of Presentation • Indian Aviation- The Emerging Story • Airport Infrastructure Development • Policy Framework • Focus Areas • Investment Opportunities

3. Indian Aviation- The Emerging Story CURRENT SCENARIO Number of Aircraft (Scheduled Operation) 321 Passengers – Domestic ( Millions) 69 – International( Millions) 26 Number of airports / airstrips 454 – AAI 97 – International Airports 16 Number of Airlines 14

4. Growth Story Pax Cargo

5. Passenger Traffic Growth Profile Indian Market Evolution: 1992-2007 Total Airport Passengers (millions) Entry of low cost carriers 3 New Airlines 7 Airlines 14 Airlines

6. Vision 2020 PASSENGERS GROWTH : 15% P.A. NO. OF AIRCRAFT (Schd.Operation) : 1000 AIR PASSENGERS : 280 million COUNTRY OF MORE THAN 1 BILLION SKY IS THE LIMIT

7. Airport Infrastructure Development - Policy Framework • Airport development in India- traditionally in public sector. • AAI Act and Aircraft Rules amended ( 2004) to enable private participation. • Public Private Participation (PPP) Model now the cornerstone of airport development. • 100% FDI permitted in Greenfield Airports( Feb 2006)- Development of new airports permissible entirely in Private Sector as well.

8. Airport Development- Focus Areas • Existing airports • Capacity Constraints • AIRSIDE • TERMINALS • Spread of Growth at other airports • Development of Regional Airports

9. Initiatives On Airports • Metro Airports • Greenfield Airports • Regional Airports

10. Initiatives On Airports • Metro Airports • DELHI & MUMBAI, THE TWO MAJOR INTERNATIONAL AIRPORTS RESTRUCTURED THROUGH JV ROUTE (2006) • Greenfield Airports • NEW GREENFIELD AIRPORTS UNDER CONSTRUCTION AT HYDERABAD AND BANGALORE. • Non Metro Airports • STATE OWNED AAI TAKING UP SELECT 35 NON-METRO AIRPORTS FOR MODERNISATION. • CITY SIDE DEVELOPMENT OF NON-METRO AIRPORTS THROUGH PPP

11. Initiatives On Airports Metro Airports

12. Delhi Airport • Taken up for restructuring in May 2006 through JV route. • JV consists of: GMR Group, Fraport AG, MAPL, IDF - 74% AAI - 26% • Annual Revenue Share to AAI- 45.9% of Gross Revenue • Capacity to be increased to 37 mppa from current 12 mppa by March 2010. • Investment- US $ 2.5 billion over 2006-16 for capacity of 50 mppa.

13. Mumbai Airport • Taken up for restructuring in May 2006 through JV route. • JV consists of : GVK, ACSA,BSD - 74 % AAI - 26 % • Annual Revenue Share to AAI - 38.7% of Gross Revenue • Capacity to be increased to 27.5 mppa from current 22 mppa by March 2010 • Investment- US $ 1.57 billion over 2006-15 for capacity of 37 mppa.

14. Kolkata and Chennai Airports Focus now on Kolkata and Chennai airports. • Kolkata airport to be modernized in Public Sector by the state owned Airports Authority of India • Project span by March 2010 • Investment US$ 340 million • Chennai airport : Modernization under active consideration; all options open.

15. Initiatives On Airports Greenfield Airports

16. Greenfield Airport – Hyderabad • Financial closure on 22nd Aug. 2005 • Work likely to be completed by Mar.2008 • Consortium - GMR Infrastructure Ltd. with Malaysian Airport Holding Berhard (MAHB) 74% • Govt. of Andhra Pradesh + AAI 26% • Estimated Investment US$ 390 million

17. Greenfield Airport – Bangalore • Financial closure on 23rd June 2005 • Work likely to be completed by Apr. 2008 • Consortium - Siemens, Germany, Unique Zurich, Switzerland and - L&T India Limited 74% • Karnataka State Industrial Investment Development Corporation (KSIIDC) + AAI 26% • Estimated Investment US$ 428 million

18. New Greenfield Airport Proposals • Kannur (Kerala) • Mopa (Goa) • Halwara (Punjab) • Chakan (Pune,Maharashtra) • Navi Mumbai (Maharashtra)

19. Mumbai Airport, even on restructuring & modernisation, to saturate by 2013. • Therefore an additional airport planned for Mumbai ( at Navi Mumbai) under PPP mode. • Development in Four Phases. • Total Project Cost : US$ 2.4 Billion • Phase 1 Project cost : US$ 1.0 Billion • Targeted operation by : 2012-13 • Design capacity : 40 MPPA Navi Mumbai Airport

20. Initiatives On Airports Regional Airports

21. Regional (Non-Metro) Airports AAI has undertaken an ambitious programme of developing select 35 non-metro airports. • IMPORTANT FOR REGIONAL CONNECIVITY AND DEVELOPMENT OF REGIONAL HUBS. • PLACES OF MAJOR TOURIST ATTRACTION COVERED. • BUSINESS HUBS COVERED. • PROJECT SPAN – NEXT 3 YEARS. WORK ON MANY OF THESE HAS BEGUN. • INVESTMENT REQUIRED- US $ 1.3 Billion. • CITY SIDE DEVELOPMENT (land use plans), through PPP mode Estimated Investment US $ 357Million.

22. Investment Opportunities • Indian aviation growing at a spectacular pace. • Investment opportunities- US $ 110 billion by 2020 • New Aircraft US $ 80 billion • Airport Infrastructure US $ 30 billion • Other areas- MROs - Steady induction of new aircraft - Potential to become regional Maintenance Hub - Investment of US $ 100 million each already committed by Boeing and Airbus. Training - Huge demand for trained manpower - Upgradation of IGRUA. - New Flying Training Institute at Gondia

23. Investment Opportunities • Strategy for development : Mixed i.e. • Public Sector, • Public Private Participation, and • Private Sector • Thus opportunities for all • Airport Developers • MROs • Commercial Lenders • Equity Funds • Multilateral Agencies • Bilateral Donors

24. Thank You

26. Ahmedabad, Amritsar, Agatti, Aurangabad, Agartala, Agra, • Baroda, Bhopal, Bhubaneshwar, • Chandigarh, Coimbatore, • Dehradun, Dimapur, • Goa (Dabolim), Guwahati, • Imphal, Indore, • Jaipur, Jammu, • Khajuraho, • 35 Non Metro Airports identified for development are • Lucknow, • Madurai, Mangalore, • Nagpur, • Patna, Portblair, Pune, • Rajkot, Ranchi, Raipur, • Trichy, Trivandrum, • Udaipur, • Visakhapatnam • Varanasi.