Airport Infrastructure in India
Airport sector is an important nucleus of the Indian economy, which carries about 35% of the total value of exports and 97% of foreign tourists. There are as many as 449 airports/airstrips in India. Government of India has realized the necessity of up-gradation of airport infrastructure and has approved a plan of INR 40,000 Crores for both brown-field and Green-field airport projects across the country.
The Ministry of Civil Aviation, Government of India is the nodal ministry. The Airports Authority of India inter alia manages airports and provides air traffic and air transport regulatory/supervision services therein. The Central Government is considering setting up of an independent Airport Economic Regulatory Authority to regulate matters such as setting aeronautical price cap, monitoring and assessing service quality performance standards and reviewing and assessing aeronautical, operating and capital expenditure. FDI up to 100% is permissible under automatic route for Greenfield projects. In case of brown-field projects, FDI up to 100% is permissible, but approval of Foreign Investment Promotion Board is required for FDI beyond 74%. The Airport Authority of India Act, 1994 is the basic sectoral law.
CLG Airport Infrastructure Practice
The airport group at CLG has been closely associated with two important green-field airport projects in India. The lawyers in this practice at CLG have experience in:
- Negotiating Concession Agreements;
- Drafting Corporate Agreements;
- Rendering legal opinion on various aspects of:
- Concession agreements
- Environmental clearance;
- Procedure and legal issues pertaining to the appointment of managing Director of Greenfield airport projects;
- Procedure and legal issues pertaining to various approvals.
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