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Evaluating public–private partnership role on the sustainability of airports in India

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  • Avin Shekhar Chourasia
  • Narendra N. Dalei
  • Karunakar Jha

Abstract

A public–private partnership (PPP) upgrades airport services, infrastructures, space, and ground handling systems. The participation of private entities could provide significant sustainability‐related issues since they typically have a profit‐making mindset. Private entities mainly focus on maximising their profits, but public entities are more concerned about attaining social objectives. The differences in their approaches lead to sustainability issues in a PPP airport project. However, studies on the impact of PPP on sustainability are very scarce and limited to other infrastructure sectors like health, education, and so forth. To examine the impact of PPP on Mumbai and Delhi International Airport's sustainability, this study used partial least squares structural equation modelling. The direct impact of private ownership, investment distribution, risk sharing, regulatory intervention, stakeholder engagement, and reputation and credibility on environmental, economic, and social sustainability was examined. The study revealed that PPP improved Mumbai and Delhi's airports' economic sustainability but have a smaller impact on social and environmental sustainability. Existing airports lag in social and environmental sustainability. To achieve social, environmental, and economic sustainability, the government must directly formulate and implement programmes. Regulators regulate JV activities and encourage social and environmental sustainability. Policymakers are likely to benefit most from building a favourable legal framework, commercial viability, and solid economic policies for effective private participation in PPP airports. The study focuses on institutional aspects. It will also help understand the mechanism's impact and how constructions and indicators are managed in PPP airport development.

Suggested Citation

  • Avin Shekhar Chourasia & Narendra N. Dalei & Karunakar Jha, 2023. "Evaluating public–private partnership role on the sustainability of airports in India," Sustainable Development, John Wiley & Sons, Ltd., vol. 31(5), pages 3595-3608, October.
  • Handle: RePEc:wly:sustdv:v:31:y:2023:i:5:p:3595-3608
    DOI: 10.1002/sd.2613
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