Speed bump! Just one bid for IGI's air train project

Time of India

01-05-2025

New Delhi: Passenger transfers at Indira Gandhi International Airport (IGIA), India's busiest, are unlikely to become seamless in the near future, as the proposed air train to link T1 and T2/3 is encountering several hurdles.
Delhi International Airport Ltd
(DIAL) is learnt to have got just one expression of interest in response to its last Sept tender for building the 7.7km-long
automated people mover
(APM), despite extending the last date for submitting bids multiple times.
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The GMR Group-backed DIAL might now ask the Union aviation ministry if it should proceed with the single bidder or reissue the tender, according to people in the know of the matter. Calling for fresh bids will mean missing the March 2028 deadline for having the air train up and running, thereby further delaying seamless transfers.
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Comments were sought from DIAL on this issue and awaited till the time of going to press.
On why IGIA, which is expected to be India's first true aviation hub like Dubai International or Singapore Changi, received a lukewarm response to the tender, a source said, "The air train is expected to be ready in 2028. At that point, only eight years will remain of the first 30-year concession period for which GMR Group had got IGIA on PPP model in 2006. The concession period is extendable by another 30 years, till 2066, but DIAL can't commit to anything beyond 2036 till that extension happens. The uncertainty in recovering costs incurred on the air train beyond that time possibly led to the poor response."
DIAL is, therefore, contemplating approaching govt to make an exception and agree to a commitment that whoever operates IGIA beyond 2036 will continue to back the air train. "The air train will be an asset to the airport, like its runways and terminals. No matter who runs Delhi Airport, they would need the APM for intra-terminal transfers," said the source.
The aviation ministry in Modi 2.0 had told DIAL it would not allow levy of any development fees to fund the project before it is ready. While the cost of the air train is not known as it has been left for bidders to evaluate and quote accordingly, it could be under Rs 2,000 crore.
The consultation paper released by Airports Economic Regulatory Authority (AERA) for determining IGIA's tariff for the period between April 1, 2024 and March 31, 2029 states: "(APM) expected to be operational by March 2028. DIAL expects throughput of 40,000 to 50,000 passengers per day initially which would be scaled up to 80,000 to 90,000 passengers per day by increasing the frequency. APM will not be chargeable for transfer passengers while for the rest of the passengers, it will be chargeable."
The cost of augmenting airport infra is recovered through two means — AERA deciding aeronautical charges for airlines like landing and parking fees which accordingly decides fares; and through UDF on passengers. UDF at Mumbai Airport, for instance, used to have a metro component of Rs 20 and Rs 120 per domestic and international departure, respectively. This component was levied from 2016 to 2023 to raise Rs 518 crore for metro connectivity and was stopped when that target sum was raised.
Delhi Airport handles almost eight crore passengers annually and will increase its capacity to over 13 crore within the next six-eight years. It is estimated that 25% travellers at IGIA will be transit flyers, underlining the need to ensure smooth transfers between T1 and T2/3. To handle such volumes, an air train between the terminals is essential.