Investment in airport infrastructure was over $5 billion (Rs 25,500 crore) in 2008 and will go up $9 billion (Rs 45,900 crore) by 2013, of which close to $6.8 billion (Rs 34,680 crore) is expected to come through public private partnerships (PPP) model, states a recent study by research firm Frost & Sullivan.

The study further states that a key driver for the airport infrastructure market is the upgradation of 35 non-metro airports identified by the Airport Authority of India (AAI).

Says Chethan Kambi, an analyst from Frost & Sullivan, ?The primary challenges that face the market are financing and the identification of key geographical areas. Funding for the airport development projects encompasses equity from loans, government grants, investors and consortium partners, all of which will be invested in the project in a phased manner to accommodate planned expansions.? He added that infrastructure projects have been based on PPP model in the past.

Nonetheless, there are immense opportunities in the next five years in the Indian airport infrastructure projects across all segments, including airport security, airport communications, navigation and surveillance, asset management and airport maintenance.

?International investors and airport companies have evinced interest in the past during the bidding for greenfield airports and many such companies are consortium partners in current airport development projects. The government aims to bring in international players to incorporate operating efficiency and global standards,? says the study.

Talking about the government?s role in encouraging private participants for airport related projects, the study says that the Indian government has provided assistance to private players in terms of tax holidays and land for constructions. ?Empowered committees and steering boards have been set up to expedite and monitor the progression of projects and policies connected with the development of airport infrastructure,? it says.

Also, the drivers for the airport infrastructure development in India have been emerging business places, increased scope for connectivity, operating models of airlines, government initiatives and the dynamic growth of tourism. The research firm says that the growth forecast for 2009-2013 for international aircraft movement is 13% and domestic is 14%.