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Report No. 15 of 2014 - Performance Audit on Public Private Partnership Project at Chhatrapati Shivaji International Airport, Mumbai - Union Government, Ministry of Civil Aviation

Date on which Report Tabled:
Fri 18 Jul, 2014
Date of sending the report to Government
Government Type
Union
Union Department
Commercial
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Sector Transport & Infrastructure

Overview

Airports Authority of India (AAI) had been the sole air traffic service provider in the country. Unprecedented increase in passenger and cargo traffic led to congestion in airports, particularly airports in metropolitan cities. Government decided to adopt the Public Private Partnership (PPP) mode in modernisation of existing airports as well as development of new airports.

It was decided with the approval of Cabinet (September 2003) that restructuring of Delhi and Mumbai airports would be undertaken through the JV route by formation of two separate companies between AAI and selected JV partners. Following competitive bidding, the JV partners for Mumbai airport were selected in February 2006. Airports Authority of India (AAI), in the capacity of the State promoter, signed an Operation, Management Development Agreement (OMDA) with Mumbai International Airport Private Limited (MIAL), a Joint Venture Company (JVC), for development and modernisation of Chattrapati Shivaji International (CSI) Airport, Mumbai on 04 April 2006. As per this agreement, AAI handed over CSI Airport, Mumbai to MIAL on 03 May 2006 on 'as is where is basis'.

Results of Performance audit of implementation of PPP by AAI in Indira Gandhi International Airport, Delhi were reported in Audit Report No.5 of 2012-13 which was presented in Parliament in August 2012. The present report examines the implementation of PPP project at CSI Airport, Mumbai.

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