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A big push to greenfield airports

— FILE PHOTO

CRUCIAL PROJECTS: Work in progress at the passenger terminal at the Rajiv Gandhi International Airport being developed by the GMR group in Hyderabad. Nearly 70 per cent of the work has been completed. It is expected to be operational by March 2008.

The Centre has released a draft policy laying down ground rules for State governments, private investors and the Airports Authority of India (AAI) for the development of greenfield airports. Andhra Pradesh and Karnataka are already experimenting with two such ventures for their State capitals. While Hyderabad’s new airport should be ready by March 2008, the Bangalore project is scheduled to become operational by April next.

The Shamsabad and Devanahalli airports have provided the States and the Central government as well as their agencies, and the private consortia developing them a valuable experience in their maiden efforts.

Both airports have suffered considerable delay from the time of conception to the proposal stage, the selection process for the developers, and then the entire exercise of land acquisition and construction. Taking a cue from these, it should now be possible for the AAI and the Union Ministry for Civil Aviation to plan better so that future ventures are handled judiciously. Perhaps, the most significant proposal is to do away with the mandatory approval of the Centre, so long as the greenfield project conforms to the policy.

New airports in New Delhi and Mumbai are also taking shape, with Chennai and Kolkata planning to expand their existing airports.

The Maharashtra and Tamil Nadu governments are also planning to set up new greenfield airports to cope with the projected increase in traffic and the limited availability of land at the existing airports for further expansion.

Further, the Centre plans to promote the Public Private Partnership (PPP) route for the future development of both greenfield and expansion of airports.

It is becoming increasingly clear that State governments need to take the initiative in the development of airports — be it modernisation and expansion, or construction of new ones.

The draft policy spells out various measures that State governments can take to promote such projects — grant of land, either on a concessional basis or otherwise; offer of other incentives such as real estate development rights; providing connectivity to airports by road and rail, and the importance of a competitive bidding process to identify the co-promoters.

Despite the teething problems and the controversies over the location and selection of partners, Hyderabad and Bangalore airports have taken shape. Passengers and airlines can soon see for themselves the facilities and technology provided there. But the major problems in both these cities relate to the distance of the new airport and its connectivity. Unfortunately, the agencies involved have not been able to keep pace with the airport development in providing special connectivity.

Plans were made to build expressways or toll ways to provide quick access to the airports from the city centre, and also to lay a railhead. Considering the 30 to 40 km distance that passengers will have to travel to and from the airports, it becomes critical to arrange for easy and speedy access.

Otherwise, it could take as much time to commute to and from the airport as it takes to fly to a neighbouring State. This is obviously something that other States must learn and act upon while embarking on such ventures.

The aviation industry wants the Centre and State governments to consider and take a firm view on the continued functioning of existing airports, once the greenfield ventures become operational. There are demands in Bangalore and Hyderabad to let the existing airports continue to operate, as they are closer to the city centres. But, while bagging the contract to develop the new airports, the promoters were clearly told that the old airports would close down once the new ventures are ready.

This is something that needs to be sorted out on a case-by-case basis, because the new ventures need to be viable, ensuring adequate return on investment. But there are also arguments that some cities require two airports and traffic can be regulated between them.

The low-cost airlines as well as couriers have been demanding a separate terminal or airport for themselves, with cheaper services and lesser facilities, to cut costs.

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