Airport infrastructure and capacity constraints are becoming top priorities for the Indian government as air traffic rises. The country will become the third-largest aviation market in the next two decades, overtaking the United Kingdom in 2026, said Alexandre de Juniac, CEO and director general of the International Aviation Transport Association, during a recent visit. The Sydney-based consultant Center for Aviation estimates that India needs $30 billion to $40 billion in capital to modernize airport infrastructure in the next 10 to 15 years.
Annual domestic passengers, now at 70 million, are expected to increase to 300 million by 2022. The Indian government has provided, until March 2017, $1.16 billion for the development of airports in smaller cities through public-private partnerships (P3s). India permits foreign direct investment of 100% for greenfield projects and 74% for existing projects. Private-sector design and project management consultants have responded to a request for proposals (RFPs) from the cash-constrained, government-owned Airports Authority of India, which owns 125 airports. The contracts will last 30 to 48 months. Operations and management are not included in the RFP.