India’s Greenfield airports policy:
• Ministry of Civil Aviation had notified its Greenfield airports policy in 2008
• Greenfield airports to be set up by AAI would be constructed through public private partnerships (PPP).
• Land for Greenfield airports would have to be provided by AAI. Further, financing gaps, if any, can be bridged through the Viability Gap Funding scheme, which provides for a capital grant of up to 20% of the project cost.
• Concessions for the development of Greenfield airports would be awarded through open competitive bidding, based on model bidding documents.
• In north-eastern areas of India, where it may not be feasible to follow the PPP route, AAI could set up Greenfield airports on its own, with approval from the Government on a case-to-case basis. Land for setting up Greenfield airports would preferably be provided by the beneficiary government/local government, free of cost and free from all encumbrances to AAI.
Changes under NABH Nirmaan, 2018:
• New financial model for building greenfield airports aimed at making air travel more affordable and addressing concerns over disputes related to tariff.
• Concession fee per passenger proposal to replace revenue sharing proposal as bid parameter for airport privatisation tenders;
• Airport tariffs "shall be predetermined by the Concessioning Authority at the beginning of the Concession Period.
• Airport tariffs to be determined by "Maximum Blended Aeronautical Yield (MBAY) in terms of INR per passenger", rather than capital expenditure;
• MBAY of INR400 (USD5.7) per passenger for all greenfield airport project proposed for FY2018/19 based on "projected cash flow analysis for greenfield airports of different capacities and a review of aeronautical yields at Indian and global airports in the recent past".
• The new model will be followed for building the Jewar airport in Uttar Pradesh.