Last month, this column looked at the moves towards the privatization of, and foreign investment in, Indian airports and the consequent opportunities that exist within the sector. While the business side will see more private investment, there is a continuing need for careful regulation and monitoring.
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The government has realized that it cannot fund the development demands of the sector. However, it will remain engaged with the sector on the regulatory front.
Increasing levels of private participation, particularly with the proposed merchant airports in what is often a monopolistic public utility, means that an effective regulatory mechanism is necessary.
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Akshay Jaitly is a partner with Trilegal. Trilegal is a full service law firm with offices in Delhi, Mumbai, Bangalore and Hyderabad.
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