Hyderabad airport concession agreement extended for further 30 years – seniority counts

Premium Analysis

The Indian airport concession programme, which was directed immediately at the busiest in the country, began in the mid-2000s and was beset by many difficulties. Subsequent governments were reluctant to upset the apple cart again and the procedure was suspended for a decade until a number of smaller airports were privatised over the past few years.

Now the government’s aviation ministry has extended the concession period for the first of the big city airports, at Hyderabad, for a further 30 years. Usually such extensions are for 10 or 20 years, so this action indicates that the government is more than content with the existing consortium.

Moreover, this is the second time there has been such an extension in the past two years.

The action sends out a message to aggressive ‘new kids on the block’, queuing up for an anticipated eruption in Indian airport deals, that seniority can count, and that their proposals need to come up to the mark.

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