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India’s new Vijayapura Airport is not a Bangalore reliever, but could be in a cargo sense

Analysis

A fresh round of airport concessions is long overdue in India. There are 26 airports that have been identified for it, with 11 in the first round when it comes.

A new greenfield airport at Vijayapura in northern Karnataka state is due to be completed in the next few months, although it will be three years late even then. It is not included in the list the government has drawn up to be concessioned, but could possibly still be added.

Vijayapura was identified in some government communications as a reliever airport for Bangalore - India's third busiest airport - and it may well do that, especially in the cargo domain. It might even do the same for Mumbai and Hyderabad airports, which are closer.

But its main purpose is to improve local trade - especially that out of the city region, and incoming tourism.

There is no concession tender out to manage it yet. That remains for now in the hands of a state organisation that already owns part of Bangalore Kempegowda Airport, with the possibility the airport will be managed by Airports Authority of India.

This report looks at the reasons why the new airport was built, and at the Indian and foreign organisations that would be likely to be attracted to it should it be offered for concession - as many other such Indian airports are likely to be, shortly.

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