State Support Agreement: What It Means for Delhi Airport
Delhi’s Indira Gandhi International Airport (IGIA) is one of the busiest airports in the world, serving millions of passengers every year. The airport, run by Delhi International Airport Limited (DIAL), has recently signed a State Support Agreement (SSA) with the government of India. This agreement has been making headlines, but what does it mean for the airport and its passengers?
First, let’s understand what a State Support Agreement is. It is an agreement signed between the government and an infrastructure project developer (in this case, DIAL) to ensure that the project is completed on time, within budget and with the necessary support from the government. This agreement provides a framework for the government to support the project financially, legally and administratively.
In the case of Delhi airport, the SSA ensures that the government will provide support to the airport in terms of land acquisition, security, customs and immigration, and other necessary services. This support is crucial for the airport’s expansion plans, which include the construction of a new terminal and the addition of more runways.
The agreement also includes provisions for DIAL to pay the government a percentage of its annual revenue. This revenue-sharing model is common in infrastructure projects, and it ensures that the government shares in the financial success of the project.
The SSA is expected to provide a boost to Delhi airport’s expansion plans, which have been in the works for several years. The new terminal is expected to be operational by 2022, and it will increase the airport’s capacity to handle more passengers. The additional runways will also enable the airport to increase its flight frequency and handle more cargo.
The agreement has been hailed as a positive development for the airport and the aviation industry in India. It is expected to attract more airlines and increase competition, which will ultimately benefit the passengers. The airport has already seen a significant increase in passenger traffic in recent years, and with the expansion plans, it is expected to become even busier.
In conclusion, the State Support Agreement signed between DIAL and the government of India is a positive development that will provide the necessary support for Delhi airport’s expansion plans. The agreement will ensure that the airport is equipped to handle the growing passenger traffic and meet the demands of the aviation industry. Passengers can look forward to a more efficient and comfortable travel experience in the years to come.