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Centre’s nod not mandatory for greenfield airports

NEW DELHI: With an estimated Rs. 40,000 crore required to build airports and related infrastructure in the country, the Central Government on Tuesday announced a draft policy laying down guidelines for State governments, private investors and the Airports Authority of India for the purpose.

Emphasising the public-private partnership (PPP) route in the construction of airport infrastructure, the draft policy proposes to dispense with the mandatory approval of the Centre in all cases of greenfield airports, barring those where the project proposal is not in conformity with the policy.

The draft guidelines were finalised by an Inter-Ministerial Group headed by Civil Aviation Secretary Ashok Chawla. It would now require the approval of the Committee on Infrastructure, headed by Prime Minister Manmohan Singh, an official spokesperson said.

Under the policy, certain functions like air traffic services, security, customs and immigration would be performed only by Central agencies. A company seeking a licence to build an airport will have to obtain clearances from these agencies. The guidelines for the respective agencies would be notified accordingly.

On the establishment of greenfield airports to be set up by the AAI, the policy suggests that this should be ‘preferably constructed’ through PPP and such airports would be financed substantially through them, the spokesperson said.

State governments planning to set up greenfield airports can either set it up by themselves or through any designated entity or establish a joint venture company for the purpose, the draft policy suggests.

State governments would also have to consider issues like grant of land, either on a concessional basis or otherwise, real estate development right, airport connectivity and fiscal concessions to such airport firms. In case a private party has to be selected, it would be done through competitive bidding, the policy recommends.

The AAI could also set up greenfield airports by itself, as may be approved by the government on a case-to-case basis, the spokesperson said.

Land for such airports would have to be provided by AAI and the concessions for their development would be awarded through competitive bidding based on model bidding documents.

Financing and development of any other airport would be the responsibility of the airport company seeking the licence from the Directorate General of Civil Aviation (DGCA). The airport company would acquire land in accordance with the existing policy of the government. — PTI

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