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

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 YearInternationalDomesticTotal No. in million %age change No. in million %age change No. in million %age change 2003-0416.6412.2032.1411.2048.7811.60 2004-0519.4216.7039.8624.0059.2821.50 2005-0622.3615.1050.9827.9073.3423.70 2006-07 E25.5214.4069.8136.8095.3330.00 YearInternationalDomesticTotal In 000 tonnes %age change In 000 tonnes %age change In 000 tonnes %age change 2003-04 693.20 7.30375.4012.701068.60 9.10 2004-05 823.6018.80456.7021.601280.3019.80 2005-06 920.1511.70483.79 5.901403.94 9.70 2006-07 E1013.1212.00531.08 9.101544.2011.10 Pax Cargo

5. Indian Market Evolution: 1992-2007 Total Airport Passengers (millions) Passenger Traffic Growth Profile 3 New Airlines Entry of low cost carriers 7 Airlines14 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 22 nd 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. Kannur (Kerala) Mopa (Goa) Halwara (Punjab) Chakan (Pune,Maharashtra) Navi Mumbai (Maharashtra) New Greenfield Airport Proposals

19. Navi Mumbai Airport 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

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