INDIAN INSTITUTE OF MANAGEMENT
AHMEDABAD ?? INDIA
Research and Publications
Airport Privatization in India:
Lessons from the Bidding Process in Delhi and Mumbai
Rekha Jain
G. Raghuram
Rachna Gangwar
W.P. No.2007-05-01
May 2007
The main objective of the working paper series of the IIMA is to help faculty members, Research Staff and Doctoral Students to speedily share their research findings with professional colleagues, and to test out their research findings at the pre-publication stage
INDIAN INSTITUTE OF MANAGEMENT
AHMEDABAD-380 015
INDIA
IIMA ?? INDIA Research and Publications
Airport Privatization in India:
Lessons from the Bidding Process in Delhi and Mumbai
Abstract
Modernization of Delhi and Mumbai airports had been considered as early as 1996 by the Airports Authority of India (AAI). In June 2003, the AAI board approved a modernization proposal. These airports accounted for 47% of the passenger traffic, 58% of cargo traffic and 38% of aircraft movement in 2003-04. They generated one third of all revenues earned by the AAI. Both Delhi and Mumbai airports handled twice as many aircraft movements as they were originally designed for, resulting in congestion for both aircrafts and passengers.
The bidding process began in May 2004 with an original completion date of September 2004. However, due to a variety of reasons, the process got delayed and the bids were finally received by September 2005. The evaluation process of the bids was questioned at various levels. There were many reviews of this with inputs from experts. The final decision was made in January 2006 by the Empowered Group of Ministers (EGoM) after compromising on some of its own set parameters for one of the airports. One of the losing bidders cal ...