The Hindu : National : Road map for airport development

Online edition of India's National Newspaper
Saturday, Dec 11, 2004

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National

Road map for airport development

By Our Special Correspondent

NEW DELHI, DEC. 10. The Prime Minister's Committee on Infrastructure today drew up a road map for development of the country's airports over the next five to 10 years. Involving an outlay of Rs. 40,000 crores till 2010, most of the modernisation and upgradation programmes will be undertaken through public-private initiatives. While some, particularly airports in the north-east, would have to be developed purely through official funding, others would be modernised solely by the private sector.

Briefing the media after the meeting, the Deputy Chairman of the Planning Commission, Montek Singh Ahluwalia, and the Civil Aviation Minister, Praful Patel, said the Ministry would draw up an agreement by early next year for private sector involvement in the modernisation of the Delhi and Mumbai airports. Called the `concessional agreement,' it would list out the exact responsibility of the private partner and those of the Government, which will participate through the Airports Authority of India. It is expected that bids for the modernisation of these two airports will be handed out by the middle of next year, once the concessional agreement is finalised.

Statutory regulator

Prior to that, a statutory regulator will be in place for the civil aviation sector as also the Civil Aviation Policy. The AAI board will also be transformed to include more professionals and independent directors since it is expected that the AAI will approach the markets to raise capital for funding the modernisation of all 80 airports in the country. However, the Government will continue to control the AAI.

The committee on infrastructure also set up an empowered committee under the Cabinet Secretary to look into issues connected with the involvement of the private sector in airport development and maintenance. Mr. Ahluwalia said there were a number of issues such as immigration, security of the complex, access to the airport which would involve the State Governments, etc., all of which needed proper coordination. The empowered committee is expected to submit its report by February next year and will continue to be in existence even after that to see the implementation of its recommendations as and when airports are taken up for modernisation.

Today's meeting also decided that the Civil Aviation Ministry would draw up plans to expedite the construction of the Hyderabad and Bangalore airports, both of which would be new airports. Besides, modernisation of the Kolkata and Chennai airports would also be taken up expeditiously.

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