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UPSC 2017 GS-III · 10 marks · 150 words

Examine the development of Airports in India through joint ventures under Public-Private Partnership (PPP) model. What are the challenges faced by the authorities in this regard?

What “Examine” demands

investigate the issue closely — how it arose, how it works, what it achieves and where it falls short — looking at both sides.

The characteristic failure: description of what the thing is, with no probing of how well it works.

What a top answer must contain

These are the checkable specifics from the marking standard for this question — the actual case, committee, datum or thinker, not an instruction to “give examples”.

  • The model: AAI holds 26% with a private partner at Delhi and Mumbai (2006); greenfield concessions at Bengaluru and Hyderabad; six airports leased in 2019
  • Gains: capacity and service quality (Delhi and Hyderabad in ACI rankings), private capital without exhausting AAI's balance sheet
  • Challenges: tariff determination disputes before AERA, and whether non-aeronautical revenue enters the till (single versus dual till)
  • Contract and regulatory risk: renegotiation, concession-period disputes, the Kelkar Committee (2015) on PPP renegotiation and risk-sharing
  • Wider frame: UDAN regional connectivity and viability-gap funding for small airports where PPP attracts no bidders

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