1. SUBMITTED TO:
Prof. SHALINI TANEJA
SUBMITTED BY:
VARUN KABARIA - 221061
NIKITA KHANDUJA - 221077
NITISH BAWEJA - 221080
PANKHURI MAHAJAN - 221086
PRABHAT TANEJA - 221090
RANJEEV DUTTA - 221115

2. • PRE-COLONIAL PERIOD (Upto
17th century)
• BRITISH RULE
• POST-INDEPENDENCE
INDIA’s ECONOMIC HISTORY DIVIDED INTO 3 Eras

4.  Indus valley civilization flourished between 2800 B.C. and 1800 B.C.
 Evidence of well planned Streets, Drainage systems and water supply
 Indicative of their knowledge and understanding of Urban Planning
 This included world’s first Urban Sanitation system
 Infrastructure development explicitly recognized during Emperor Sher
Shah’s rule (1540-1545)
 The famous Grand Trunk Road linking the East and West extremities
of India was completed during this period
 Other major irrigation and road projects were undertaken during his
regime

5. British rule brought with it major developments like
 Railways
 Telegraph
Though, these contributed strictly and largely to their colonial expansion
 Such an infrastructure laid foundation to India’s development story beginning in
1947

6. The planning commission broadly defines Infrastructure
development as Transport and Telecommunications development
Thus it includes the following:
 Roads & Road Transport
 Railways
 Shipping
 Ports
 Civil aviation
 Communications & Broadcasting

7. • The Union Budget 2012-13 stated that
investment in infrastructure is to go up to
Rs 50 lakh crores with half of the total
investment expected from private sector.
• More sectors proposed to be added as
eligible sectors for Viability Gap Funding
under the scheme- Support to PPP in
infrastructure

8. • Tax free bonds of Rs
60000 crore to be
allowed for financing
infrastructure
projects in 2012-13.
• The Union Budget
announced
harmonised master
list of infrastructure
sector approved by
the Government.

9. • National Manufacturing
Policy announced with the
objective of raising the
share of manufacturing in
GDP to 25 per cent and
creating of 10 crore jobs.

10. • Coal India Limited was
advised to sign fuel
supply agreements with
power plants, having
long-term PPAs with
DISCOMs and getting
commissioned on or
before 31 March 2015.

11. • External Commercial Borrowings (ECB) to
be allowed to part finance Rupee debt of
existing power projects

13.  The Union Budget 2012-13 proposed an
increase of allocation of the Road
Transport and Highways Ministry by 14 per
cent to Rs 25360 crore . ECB proposed to
be allowed for capital expenditure on the
maintenance and operations of toll
systems for roads and highways, if they are
part of original project.

15.  The budget permitted direct import of
Aviation Turbine Fuel for Indian carriers.
 The budget also stated that the ECB is to be
permitted for working capital requirement of
airline industry for one year subject to a total
ceiling of US $ 1 billion. Proposal to allow
foreign airlines to participate upto 49 per cent
in the equity of an air transport undertaking
under active consideration of the government
was also made.

17. “Expanding investment in infrastructure can play
an important counter cyclical role. Projects and
programmes [are] to be reviewed in the area of
infrastructure development, including pure public
private partnerships, to ensure that their
implementation is expedited and does not suffer
from [the] fund crunch.”
Mr. Manmohan Singh, Indian Prime Minister,

18.  NETWORK OF ROADS IN INDIA - 33.2 lakh km.
 On the basis of nature & surfacing - 1.Metalled (pucca)- 57%
2. Unmetalled (kuchcha) -43%
On the basis of construction & maintenance –
(a.) Golden Quadrilateral Super Highway :
(i) NHDP Phase- I :- 5,846 km., six lane,
CONNECTING-Delhi ,Mumbai, Chennai and Kolkata
(ii) NHDP Phase- II :- 7300 km.
* NS Corridors – Srinagar to Kanyakumari
* EW Corridors – Silchar(Assam) to Porbandar(Gujarat)
(iii) Port connectivity and other projects - 1,157 km.
(iv) NHDP Phase – III:- 4,015km., 4 lane ,
-National Highway Authority of India (NHAI) is the implementing agency for NHDP programme.
-NHAI is implement 4 laning of 603km. Special Accelerated Road Development Programme in the
North Eastern Region (SARDP-NE) ,

20. (b.) NATIONAL HIGHWAYS -- As on March 31,2006 - 65,569 km.
2% of the total length of the road network
CPWD constructs and maintains National Highways.
35%-single lane, 53%-2lane & 12%-4 lane or more.
(c.) STATE HIGHWAYS -- 1.28 lakh km. 97%of the length of state highway
is metalled.
The State Highways are constructed and maintained by State
Government.
(d.) DISTRICTS ROADS – 4,70,000 km.
Districts authorities constructs and maintain the District Roads
(e.) OTHER ROADS - mostly kuchcha roads, 26,50,000 km.
(f.) BORDER ROADS - Border Road Development Board , World’s highest
Roads from Manali (H.P.) to Leh of Ladakh (J&K)
ROAD DENSITY - The lowest density – 10 km.per 100 sq.km in J.&K.
The highest density – 375 km.per 100 sq.km. in Kerala
The national average of road density – 75 km. per 100 sq. km.

21. 21
0
200000
400000
600000
800000
1000000
1200000
1400000
1600000
1800000
2000000
2200000
2400000
2600000
2800000
3000000
3200000
3400000
3600000
3800000
4000000
1981
1982
1983
1984
1985
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
NO.OFVEHICLESREGISTERED
As of June 30th 2009 more than 6.0 million vehicles were registered in Delhi,
equivalent to the total number in Kolkata, Mumbai and Chennai.
Two
Wheelers
Car/
Taxis
Buses and
Heavy
Vehicles
TSR
Source: Transport Department, GNCTD

22. 22
Cars and two-wheelers together drive less than 20% of its people -- and yet roads
are choked. (Source: CSE)
Courtesy: Flickers
22

23. 23
The Car Oriented Infrastructure

24. • Population per sq. km in Delhi is
less compared to other cities like
Hong Kong, Seoul and Paris (City)
which are more densely populated.
• Road space as percentage of total
land area is 21% in Delhi.
– Present road length- 28,000 Kms
with limited expansion
possibilities.
30,100
24,500 24,448
13,930
9,340
10,400
Hong Kong Seoul Paris (City) Delhi (Urban) Delhi (Whole) Tokyo
21%
13% 13%
12%
11% 11%
Delhi Tokyo Munich Hong Kong Paris Bangkok
Road Space as Percentage of Total Area
Delhi is developing urban sprawl
Delhi Vs. Other World Cities
World Cities - Population per sq. km.
24

25. Corridor Identification
GNCTD commissioned study in 2005 which identified 43 corridors (575 km)
with Peak Hour Peak Direction Traffic (PHPDT) exceeding 5,000, assuming
the following exist:
― Metro Phase I & II
― Ambedkar Nagar-Delhi Gate BRT
― Phase I IRBT corridors (2 nos.)
25
PHPDT Length (in Kms) No. of Corridors Choice of Mode*
>25,000 93 4 Metro
20,000-25,000 57 4 Elevated LRT
15,000-20,000 131 8 At grade LRT
10,000-15,000 179 13 At grade BRT / Elevated Monorail
5,000-10,000 115 14 At grade BRT
Total 575 43
* Based on World Bank and other studies
Demand-wise Number and Length of Corridors

26. 26
• DIMTS, on behalf of Transport Department, commissioned “Transport Demand Forecast
Study” in 2008.
– To develop a Transport Demand Forecast Model and Identification of a Road cum
Public Transport Network to meet the city demand by 2021 & beyond.
– The study identified a total length of 583.4 kms for the development of different
public transport systems:
• Choice of mode depends mainly on demand level on a corridor, capacity of the mode and
the available Road/Right Of Way (ROW).
– Other considerations are the land-use along the corridor, the location of building
lines, and the potential for increasing the ROW .
Metro
148.2 kms
BRT
394.9 kms
Mono Rail
40.3 kms

27. BAKHTAWARPUR
KARAWAL NAGAR
CHILLA
RAJOKARI
KHAIRA
GOPALNAGAR
IBRAHIMPUR
NAJAFGARH
CHHAWLA
DILSHAD GARDEN
AIRPORT
ISBT
BADARPUR
TO GURGAON
DELHI BORDER
(BAHADURGARH)
KANJHAWALA
BAWANA
TO NOIDA
ANAND VIHAR ISBT
(TO VAISHALI)
GOKALPURI
MUKUNDPUR
ROHINI SEC-21
MUNDKA
DABRI MOD
DWARKA
JASOLA
AMBEDKAR NAGAR
VASANT KUNJ
MEHRAULI
KAPASHERA
GULABIBAGH
IG
STADIUM
DHAULAKUAN
CENTRAL
SECTT
NARELA
RAJEEV
CHOWK
KALINDI KUNJ
JASOLA
PUTHKHURD
ARJANGARH
(TO GURGAON)
KONDALI
METRO
MONORAIL
BRT
INTERCHANGE
Recommended
Integrated
Public Transport
Network
Approximate Cost – Rs. 462.7 Billion

28. Mode Length (Kms) Budget (in Rs.)
Metro – Phase I 65.1 Kms Rs. 105. 7 billion
Metro – Phase II 128.0 Kms Rs. 190.0 billion*
BRT – First Corridor 14.5 Kms Rs. 2.0 billion
28
* Inclusive of Civil work of Airport Express line.
Source: Delhi Metro
Investment focus on one mode of public transport and minor
investment in other modes.

29. 29
Automated
Vehicle
Location
System
Automated
Fare
Collection
System
Intelligent
Signaling
System
Parking
Information
System
Real-Time
Traffic
Information
System
Real-time
Monitoring
System
Interactive
journey
planner for
all modes
Car Sharing
Cycle
Sharing
Systems

30. 30

31. 31
<TRAKO PIS Chirag Delhi>
419DN-2,
522UP-6,
419UP-7,
419ACUP-14,
423ACDN – 28 mins
Info by DIMTS
Mobile user needs to send simple
message:
TRAKO<SPACE>PIS<SPACE>BUS
STOP NAME
to 54545
(You will instantly receive a SMS
response: Next Bus at Bus Stop
for Route Number expected in ‘X’
minutes)

32. 32www.dimts.in

33. Automated Fare Collection System
Delhi Government is also planning to create an Integrated Multi-Modal Ticketing
system, comprising DTC, Private Buses and Delhi Metro.
DMRC System
Central
System
(CCHS)
Wi-FI
Depot
Computer
System
Depot
Computer
System
DTC
Private Buses
Wi-FI
Delhi Transport Corporation
33

34.  AFCS implemented on Dwarka
Circular Sewa, inter-connecting key
destinations in Dwarka sub-city such
as metro stations, shopping centres,
schools…………
 The system is operational in 6 low-
floor A/C buses.
34

35. 35
• Transport Department is planning to cover
Autorickshaws and Taxis under the ambit
of a Vehicle Tracking System.
• A separate call centre will be setup for
booking and the despatch of
autorickshaws.
• A similar service will be launched in other
cities including Ahmedabad, Pune,
Chandigarh and Chennai.
Transport Department, GNCTD will install GPS-based Vehicle Tracking System in all
55,000 auto rickshaw in the city and will establish a call-centre facility.

38.  In 1947 rail network of about 53000 km
 Added only 11000 km of network in last 65
years
 Modifications like-
-Gauge changing
-Electrification
-Computerization
-Double tracks

40.  Investment of Rs. 57630 cr the year 2011-
12 for the development, highest ever by
Indian railways in any financial year
-Target of laying 1075 km of new lines in
2012
-800 km of gauge conversion
-700 km of Doubling of lines

41.  High speed rail travel
 Raising the speed of regular passenger trains
from 100-130 khph to 160-200 kmph
 To develop 50 world class stations which can
be recognized internationally
 Segregating passenger and freight tracks
completely

42.  Mega infrastructure project of USD 90
billion
 To connect Delhi & Mumbai through road
and railway network of 1483 km
 Delhi, U.P., Haryana, Rajasthan, Gujarat,
Maharashtra this states will be connected
to form a corridor of international
standard.

43. 1. The total length of railway network as on March, 2002 was 63028 km.
(i) Broad Gauge (1.67 metre) - 45622 km. (70%)
(ii) Metre Gauge (1 metre) - 14364 km. (24.6%)
(iii) Narrow Gauge(0.77 metre) - 3136 km. (5.36%)
As on March, 1951 – 53596 km. - 18% increase
2. Additional Lines on the already existing busy routes– total running track had
increased from 59,315 km. to 1,07,969 km. in 2001.
3. Electrification of route – By March,2006 the Indian railways had got 17500 km. of
railway route electrified.(26% of total route)
Purposes of Electrification –(i) relieves railways from steam engines.
(ii) ensure more speedy movement.
(iii) Clean and pollution free travel.
4. Container Service - Provides door to door service for goods & commodities by CCI.
5. Computerised reservation & more and more coaches and sleepers.
6. METRO Railway - Kolkata, Delhi, Mumbai & Chennai
7. Super fast Trains

44. Pipelines have become a major means of transport and are used in transporting crude
oil, petroleum product and natural gas from the oil and natural gas fields to refineries,
fertiliser factories and big thermal power generation plants.
Major categories of pipeline transportation in India :-
1. upper Assam Oil fields to Kanpur via Guwahati, Barauni and Allahabad
2. Salaya (Gujarat) to Jalandhar (Punjab) via Viramgam, Mathura, Delhi and Panipat.
3. Hazira (Gujarat) to Jagdishpur (U.P.) via Bijapur (M.P.) –the longest pipeline in India
-1700km.
4. Mumbai HIGH with Mumbai – Pune
PROPOSED PIPELINES –
(I) Between Kandla and Panipat
(II) Between Kandla and Bina
(III) Between Mumbai and Manmad
(IV) Between Vishakhapatanam to Vijaiwada
(V) between Mangalore to Chennai via Bangalore

46. India has a large number of perennial rivers and a very long coastline of 6100 km.
Types of waterways:- (a.) Inland water transport
(b) Ocean water transport
National Waterways :-
1.The Ganga river - Allahabad to Haldia - 1620 km.
2. The Brahmaputra river - Sadiya TO Dhubri - 891 km.
3. The West Coast Canal - Kollam to Kottapuram - 14 km.
4. The Champakara Canal – Kerala -13 km.
5. Udagmandalam Canal - Kerala -22 km.
Major Sea Ports :- At the time of Independence - 5 sea ports
Sea ports at West Coast Seaports at East Coast
1. Kandla 1. Tuticorin
2. Mumbai 2. Chennai
3. Nhova Sheva (Jawahar Lal Nehru) 3. Ennore
4.Mormugao 4. Vishakhapatnam
5. Mangalore 5. Paradip
6. Kochi 6. Haldia

48.  Air travel is the fastest, most comfortable and prestigious mode of transport.
 Civil Aviation Department of controls and supervises the activities of airlines and
gives guidelines for safe operations of the airlines.
 AIR SERVICES :- 1. Air India - 26 Air Craft
2. Indian Airlines - 54 Air Craft
3. Pawan Hans Helicopters
4. Private Air Lines (Scheduled & Non-scheduled)-70
International Airports :- 14 1.Delhi 8.Kochi
2.Mumbai 9.Hyderabad
3.Chennai 10. Guwahati
4. Kolkata 11. Bangalore
5. Amritsar 12. Thiruvananthapuram
6. Ahmedabad 13. Srinagar
7. Panaji 14. Pune
Airports are managed by Airports Authority of India.

50. Cargo airlines :Blue Dart Aviation ltd is
Operating scheduled cargo services in
the country

53.  Allahabad
 Saidiya
 Kollam
 Bhadrachalam
 Mangalgadi

54. Major ports of India

55.  A project to upgrade, rehabilitate and widen major highways to a higher standard
 Implemented under the leadership of Atal Bihari Vajpayee
 Managed by National Highways Authority of India (NHAI)
 Proposed investment for this project amounts to US $ 71 billion
 This project will be completed in 7 phases
 Most important of these being PHASE I and II
 PHASE I : Golden Quadrilateral project
 PHASE II : North-South & East-West corridor

56.  An autonomous agency of Government of India
 NHAI was created through the promulgation of the National Highways Authority
of India Act, 1988
 The authority was made autonomous in 1995
 Responsible for development, maintenance, management and operation of
National highways totaling around 76,818 KM
INDIAN ROAD NETWORK
CLASS LENGTH
National Highways (Already 4/6 laned) 16,000 KM
National Highways (Being laned) 25,000 KM
State Highways 1,54,522 KM
Major and other district roads 2,577,396 KM
Rural & Other roads 1,433,577 KM
Total (Approx.) 4,245,429 KM

58. STATUS

59.  Represents the PHASE I of the NHDP, launched in 2001
 Launched by Shri Atal Bihari Vajpayee, it was planned to complete in January,
2012
 It is highway network connecting many of the major industrial, agricultural and
cultural centers of India
 This project seeks to improve the connectivity of four major cities in India
 It is the largest highway project in India and 5th longest in the world
 GQ project would greatly impact urban and rural growth of Indian
manufacturing
 GQ project has led to improvements in both urban and rural areas of non-nodal
districts located 0-10 KM from the GQ

61.  Represents the second phase of the NHDP
 Consists of building 7300 KMs of 4/6 lane expressways
 It connects Srinagar, Kanyakumari, Porbandar and Silchar
 The proposed cost for this project is Rs. 42,000 crores
As of date : - October 31, 2013
Segment NS – EW Corridor
Total Length 7,142 KM
Length Completed 6,177 KM
Under Implementation 593 KM
Length to be Awarded 372 KM
% Completed 86.48 %
STATUS

62. The projected economic benefits of these highway projects are:
 Establishing faster transport networks between major cities and ports
 Providing an impetus to smoother movement of products and people within
India
 Enabling industrial and job development in smaller towns through access to
markets
 Providing opportunities for farmers, through better transportation of products
from the agricultural hinterland to major cities and ports for export, through
lesser wastage and spoils
 Driving economic growth directly, through construction as well as through
indirect demand for cement, steel and other construction materials
 Giving an impetus to Truck transport throughout India

63. PREMISE OF THE CASE:
Large infrastructure projects have
major implications for achieving
low-carbon development goals

66.  DFC project signifies a major transition in the freight transport sector through increased sharing
of rails, which are
• More energy efficient
• Environment friendly
• Less Carbon intensive mode of transport
 3 scenarios are taken into consideration here
• Business-as-Usual (Without DFC)
• Business-as-Usual (With DFC)
• Low Carbon (With DFC)
 Here Low carbon path development assumes a number of supply-side interventions that lead to
further improvements in energy efficiency as well as decarbonisation of electricity at the
generation stage. This is different from the BAU scenarios

70.  DEC 1910: Team of mechanics and aviators,
led by Capt. WG Windham land in India.
 Show case their airplanes for business
opportunities
 Exhibition at Exhibition Grounds in Allahabad

72. YEAR: 1912
ROUTE: Karachi to New Delhi
Indian State Air Services
and Imperial Air

73.  1932: JRD Tata formed Tata Airlines
 JRD Tata was the first Indian to get A license
 First Indian commercial carrier to transport mail and
passengers within India
 The company was based out of a small hut with a
palm thatched roof at Juhu Airstrip in Bombay
(Mumbai)

74.  JRD flew the first leg of the inaugural Karachi-Madras (Chennai) journey
himself, taking mail from Karachi to Bombay via Ahmedabad using a
single-engine De Havilland Puss Moth
 In its first year, Tata Airlines flew 160,000 miles, carrying 155 passengers
and more than 10 tonnes of mail.

75.  The Indian Air Force
was established
in British India as an
auxiliary air force of
the Royal Air Force
 The IAF
commissioned its first
squadron , No.1
Squadron, with
four Westland Wapiti
Biplanes and five
Indian pilots in 1933

76.  1924: Construction of civil airports began in India.
Construction began at Dum Dum in Calcutta, Bamrauli
in Allahabad and Gilbert Hill in Bombay
 1937: The Aircraft Act, 1934 was promulgated
 1940: Hindustan Aeronautics Limited (HAL) was set up
by Walchand Hirachand in association with the then
Mysore Government at Bangalore.
 1941: India’s first aircraft, the Harlow trainer was rolled
out for test flight in July 1941

77.  1946: Tata Airline becomes Air India
 At the time of independence, nine air transport companies
were carrying both air cargo and passengers.
 1948: Government of India takes 49% of the company
 Government of India established a joint sector company, Air
India International Ltd in collaboration with Air India (earlier
Tata Airline) with a capital of Rs 2 crore and a fleet of three
Lockheed Constellation Aircrafts

78.  All airlines nationalised
 Eight formerly independent domestic airlines: Deccan
Airways, Airways India, Bharat Airways, Himalyan Aviation,
Kalinga Air Lines, Indian National Airways, Air India, Air
Services of India were merged.
 Air India International took over the international traffic
 Indian Airlines Corporation handled the domestic operations

79.  1953: Civil helicopters introduced for the first time in the
country
 The commercial use of helicopters in India was limited to
small Aviation companies who were involved in
communication and crop spraying roles.
 1985: Pawan Hans Helicopters Limited (PHHL) and Indira
Gandhi Rashtriya Uran Academy (IGRUA) in Fursatganj, Rai
Bareli in Uttar Pradesh for training of pilots were established

80.  The National Airports Authority [NAA] established
in 1986 for the management of all domestic airports
and Air Traffic Management of the entire Indian
airspace and adjoining oceanic areas

81.  The BCAS was under the Ministry of Civil
Aviation and set up as a sequel to the Kanishka
Tragedy in June 1985. The main responsibility of
BCAS are lay down standards and measures
in respect of security of civil flights at
international and domestic airports in India

82.  http://www.apaoindia.com/?page_id=185
 http://dgca.nic.in/
 http://www.civilaviation.gov.in/
 http://www.bharat-
rakshak.com/IAF/History/Aircraft/AviationIndia.pdf
 http://www.bcasindia.nic.in/aboutus/aboutus.html

83. POLICIES
 Liberalization - Private Players
 Open Sky
 Direct import of ATF - Regulation
 FDI – domestic Services Sector
 Airports control - Airports Authority of India (AAI)
 Green Field Airport

84.  The Air Corporation Act, 1953 repealed
 Opening up of the domestic sector
 Disinvestment of the two public sector airlines
 New privately owned domestic airlines
 Open Sky
 Allow foreign airline of any country or ownership to land at
any port on any number of occasions and with unlimited seat
capacity.
 Foreign Direct Investment
 Up To 49% Of Foreign Equity & 100% Of NRI investment is
allowed Pertaining to the Domestic Air Transport Services
 Private Carriers permitted to operate scheduled services –
75% share in domestic aviation.

85.  Entry of low cost carriers
 City side development of non-metro airports
 Allowing Indian carriers to compete on international routes
 Reduction in Landing charges.
 Fleet expansion plans of Air India
 Restructuring of Delhi and Mumbai airport and development
of Greenfield airports at Bangalore and Hyderabad
undertaken.
 Up gradation/ expansion/ development of airports
undertaken depending upon traffic potential, requirement of
airline operators and need of air passengers.
 With the liberalization of the Indian aviation sector, aviation
industry in India has undergone a rapid transformation.
Indian aviation industry is now dominated by privately owned
full service airlines and low cost carriers.

86.  1991, September 20: Sahara Airlines started its operations.
 1993, May: Jet Airways started its operations.
 1995: India’s six private airlines accounted for more than 10%
of domestic traffic. Many foreign airlines started providing
international services. In 1995, 42 airlines operated air
services to, from, and through India.
 1995, April 1: Airport Authority of India was constituted by
merging the International Airport Authority of India with
National Airports Authority.
 1997: Policy on Airport Infrastructure of India was developed
for the use and development of airport infrastructure.

87.  1999, June 10: CIAL Airport was the first airport in India
which was built with public-private participation and was
made operational. The process for development of CIAL
as a private airport began in 1993.
 2000, October 2: Sahara Airlines was rebranded as Air
Sahara.
 2003: Entry of low cost carriers. Air Deccan started its
services
 2004: Government approved setting up of private
Greenfield airports at Hyderabad and Bangalore.
 2004, June: Low Cost Carrier – GoAir started it operations.
 2004, December: Indian Scheduled carriers with a
minimum of 5 years of continuous operations and a
minimum fleet size of 20 aircraft, were permitted to
operate scheduled services to international destinations.

88.  2005: Indian Airlines was rebranded as Indian. The
Government designated Air India, Indian Airlines, Jet Airways
and Air Sahara to operate international services.
 2005, May: Kingfisher Airlines (Full Service Carrier) and Spice
Jet (Low Cost Carrier) commenced operations.
 2006, August: Low Cost Carrier – Indigo started its
operations.
 2006: The government approved the restructuring and
modernisation of Mumbai and Delhi brownfield airports
through the public-private partnership model.
 2007: The Regional Airlines Policy was announced wherein
licenses were given for operation of airlines within a
particular region.

89.  2008, April 24: The path breaking Greenfield Airport Policy of
the Government was announced.
 2008, August: Simplify Deccan was renamed as Kingfisher Red.
 2009, May 12: AERA was established to regulate the economic
aspects of airports. It is an autonomous body set up by an Act
of Parliament.
 2010: Airport Economic Regulatory Authority Appellate
Tribunal (AERAAT) was established.
 At present, India is the 9th largest aviation market in the world
with 90 operational airports, 1,180 aircrafts, 303 helicopters,
11 operational scheduled airlines and 133 non-scheduled
operators. It is envisaged that by year 2020, India will be
among top 3 Civil Aviation Markets in the world and will
handle about 300 million passengers.

90.  Year Passenger Carried (in millions)
Domestic International Total
1990-91 7.5 6.3 13.8
1995-96 12.2 9.4 21.6
2003-04 15.7 14.6 30.3
2010-11 53.9 37.9 91.8
Source: DGCA, AAI; Analysis: MoCA

91.  Rising domestic Gross Domestic Product (GDP)
 GDP - 5.7% in the period 90-91 to 2003-2004 which then rose to
8.6% during 2004-05 to 2010-11.
 Growing economic activity resulted in increase in business travel
and greater leisure travel
 Expanding middle-income group
 middle income group population in 2010 stood at 160 million
individuals i.e. 13.3% of the total population, which is expected to
rise to 547 million in 2025 (i.e. 37.2% of the total population)
 Demographic Dividend
 62% of the population is in the working age group of 15-60 years -
indicating a larger employee base, greater business travel and
greater economic activity.

92.  Rising Urban Population
 Significant Market Developments
Source: Spicejet Annual Report 2009
0
20
40
60
80
100
120
Column1
LCC
FCS

93.  Low Cost Carrier (LCC) model which made air travel
affordable for common man got established firmly in the
domestic market since 2004. This stimulated the pent up
demand for air travel.
 The domestic traffic is rapidly shifting towards the LCC model.
Market sources suggest that this has crossed 67% during
2011-12.
 This leads us to believe that Low Cost Operations in a price
sensitive market like India appear to be a more sustainable
business model

94.  Investments in Airport and related infrastructure
 Total investment made by private airport operators in the last
five years was to the tune of Rs 30,000 crores spread across
Greenfield development of Hyderabad and Bengaluru
international airports and modernization of Delhi and
Mumbai international airports
 Growing tourism
 2001 to 2010-the average annual growth rate of foreign
tourist arrivals in to India and Indian National departures
from India grew by 9.2% and 11.5% respectively.
 The number of foreign tourist arrivals in India stood at 5.6
Million in the year 2010 as against 3.46 Million in 2004 and
2.54 Million in 2001. Similarly, the number of Indian National
departures from India stood at 12.1 Million in 2010 as against
6.21 Million in 2004 and 4.56 Million in 2001.

95. Untapped market potential
Air traffic density in India using this measure is very low at 72 as
compared to China (282), which is 4 times higher; Brazil
(231), which is 3 times higher etc. indicates the untapped market
potential.
Global integration of businesses
Greater economic activity and the consequent greater
integration of businesses globally would mean greater business
travellers across national boundaries. Also, the growing trend of
outbound Mergers and Acquisitions (M & A) and is set to grow
further in future implies greater business related travel

96.  Airlines in India are having financial difficulties.
 Even Jet Airways has seen its market share and profits
decline and stock price plummet by 40% since 2005.
 Inability of the airlines to reduce costs
 “Irrational” pricing that set in after the advent of LCCs. They
have chased market share, i.e., revenue maximization and
forced the incumbents to match their low prices.
 OUTCOMES
 Either some of them go bust in a market shake-out or they
merge/get acquired by other airlines or business groups.

97. These two national carriers enjoyed monopoly power in the
industry until the Air Corporations Act was repealed.
 intense competition from private carriers - main reason for
steep decline in their market share and profits.
 Indian Airlines - monopoly on domestic services until
1994, market share decline from 100% to 17% since.
 Air India and India Airlines merged in 2007 (NACIL was
formed) in order to recover their losses and work efficiently
 PROBLEMS- no clear ownership and mismanagement by
authority
 poor execution of plan and improper strategy along with
massive misuse of funds

98.  Sub-optimal aircraft utilisation: Air India’s fleet utilisation is
very poor with only around 100 operational aircraft out of a
total registered fleet of 127 aircraft
 Fleet issues: The B777-200LR, B747-400 and the A319 aircraft
are poorly matched with the mission requirements of its
international and domestic routes
 Business model needs to be reworked: Air India requires a
comprehensive review of its business model. At present there
are fundamental weaknesses in each of its key domains.
 Government intervention: In addition to these huge
challenges, the management of Air India has to deal with
excessive intervention by the Ministry of Civil Aviation and
other ministries

99.  After the liberalization of Indian Economy in 1993, two new
airlines, Jet Airways and Air Sahara entered in the domestic
market.
 15 years later, in 2008, Air Sahara was acquired by Jet
Airways and renamed as JetLite.
 Now Jet Airways and JetLite together share 23.8 % of the
domestic market in India and this airline remained the
market leader in Indian Domestic Sector for many years
until recently toppled by Indigo to number 2 spot.
 It is basically a full-service carrier, but also offers low-cost
services under the name of JetKonnect.

100.  India's first low-cost carrier, Air Deccan, reported a $43
million loss for the fourth quarter ending June 2007.
 To keep afloat, Air Deccan sold 26% of stake in May 2007 at
$136 million to liquor baron Vijay Mallya's then two-year-
old Kingfisher Airlines
 This stake was later increased to 46%. The business models
of these two airlines seemed to be as diametrically opposite
- ran as separate entities. Kingfisher and Kingfisher Red
 plan to improve performance and save money by sharing
facilities and staff.

101.  The King of Good Times, liquor barren, Vijay
Mallya, gifted this airline to his son on his 18th birthday
as a birthday gift in 2005, it was deemed that the
passengers would fly in the sky with a style.
 For next six years, it indeed treated its customers in
style. Even the airlines served on-board meals on its
low-cost wing Kingfisher Red, against the trend.
 the dream collapsed somewhere in the sky and
today, the aviation regulator has cancelled the flying
license of the Kingfisher Airlines.
 Due to its poor financial health, the airline is unable to
pay its dues to the banks and salaries to the employees
 http://www.solobackpacker.com/2012/11/09/an-
overview-of-domestic-airlines-in-india/

103. Indigo uses a fleet of 150 aircrafts
from AIRBUS – A 320
The advantage of using a single type of
aircraft shows in their profit making
ability in this competitive aviation
sector.
Jet uses a mix of wide
bodied boeing 777 and
narrw bodied 737’s as
well as slightly wider
Airbus A330’s