Greenfield Airport Development in India: A Case Study of Bangalore International Airport

Abstract

Government of India (GOI) is promoting Public Private Partnership (PPP) for development of Airports in India. Successful implementation of PPP depends on the efficient distribution of project risks among stakeholders. Bangalore international Airport Limited (BIAL) is taken as a case to study the development of green field airports in India under PPP. The case analysis has revealed time overrun, cost overrun, stakeholders conflict, Demand variation, debt repayment default, increased liability of lender and public authority due to refinancing, Macroeconomic risk i.e. inflation, exchange rate , Interest rate variation, Gaps in concession agreement, not prefixed rate of return as the prime risks in development of green field airport in India. Policy suggestions are based on action required to mitigate these risks