Concession Agreement Bangalore Airport

The Bangalore airport, also known as Kempegowda International Airport, is one of the busiest airports in India. It is operated by Bangalore International Airport Limited (BIAL), a joint venture between the Government of India and the private sector. BIAL has signed a concession agreement with the government for the development, operation, and maintenance of the airport for a period of 30 years.

What is a concession agreement?

A concession agreement is a contract between a government and a private sector company where the company is given the right to operate and maintain a public asset for a specific period of time. In return, the company pays a fee to the government, and is responsible for the development, financing, operation, and maintenance of the asset during the concession period.

The concession agreement for the Bangalore airport was signed in 2004, with the government granting an initial concession period of 30 years to BIAL. The agreement covers the development, operation, and maintenance of the airport, as well as the construction of new facilities like the second runway, terminal building, and ancillary buildings.

Advantages of concession agreements

Concession agreements have several advantages for both the government and the private sector. For the government, it provides a way to leverage private sector expertise and investment to develop public assets. The government also benefits from an immediate infusion of funds through the concession fee paid by the private sector company.

For the private sector, concession agreements provide a predictable revenue stream and allow them to leverage their expertise and resources to develop and operate public assets in a profitable manner. It also allows the private sector to invest in large-scale projects that may not be feasible for the government due to lack of funds or expertise.

In the case of the Bangalore airport, the concession agreement has been successful in developing the airport into a world-class facility, with state-of-the-art infrastructure and amenities. The airport has won several awards for its design, functionality, and customer service, and has become a major driver of economic growth in the region.


Concession agreements are an effective way for governments to leverage private sector investment and expertise to develop public assets. The Bangalore airport concession agreement is a success story, which has transformed the airport into a world-class facility, providing an excellent passenger experience, generating economic growth, and creating job opportunities.