India gave GMR and GVK control of Delhi and Mumbai airports in 2006

Delhi and Mumbai, India's two gateway airports, handled about 57% of the country's passenger traffic. In September 2003 the Cabinet decided to restructure and modernize both through joint ventures with private participation, and a tender process began in February 2004, drawing ten expressions of interest and nine short-listed bidders.

In February 2006 the government selected the GMR consortium for Delhi Airport and the GVK consortium for Mumbai Airport. The operations, maintenance and development agreements were signed on April 4, 2006: the state's Airports Authority of India would hold 26% of each joint venture, private partners would pay Rs150 crore each, and employees would be absorbed without job losses.

The losing bidder, Reliance Airport Developers of the Anil Ambani group, challenged the award. The Delhi High Court and then the Supreme Court in November 2006 upheld the bidding process, clearing the way for GMR and GVK to take physical control and making the two projects India's template for airport public-private partnerships.

Private concessions brought capital and management to airports handling about 57% of India's passenger traffic, with AAI holding 26% and no job losses.

State-run airports could not keep up with passenger growth at the two biggest gateways.

The 2003 Cabinet decision and amended AAI Act gave the reform legal footing.

Competitive bidding with revenue sharing set a transparent price for the concessions.

Keeping AAI at 26% preserved state participation while transferring management.

Supreme Court validation in 2006 removed the uncertainty from the losing bidder's challenge.

A competitive PPP with the state keeping a minority stake can modernize infrastructure faster than state operation — if bidding and contracts survive legal challenge.

GMR and GVK rebuilt both airports into modern international hubs, and the two projects became the precedent for India's airport reform: the concession agreements shaped rules on passenger service fees, the airport development fund, greenfield airports and the Airport Economic Regulatory Authority. Subsequent Indian airport privatizations followed the same revenue-sharing PPP structure.