Date:11/12/2004 URL: http://www.thehindubusinessline.com/2004/12/11/stories/2004121102510100.htm

Back PM clears airports modernisation plan

Our Bureau

New Delhi , Dec. 10

THE Prime Minister, Dr Manmohan Singh, today gave his seal of approval for the Rs 40,000-crore expansion and modernisation plan for airports across the country as well as setting up of a regulator for the sector.

The Committee on Infrastructure headed by the Prime Minister today decided to endorse the privatisation plan of Delhi and Mumbai airports and is in favour of setting up Greenfield projects in Bangalore and Hyderabad expeditiously.

Speaking to presspersons after the meeting, the Deputy Chairman of the Planning Commission, Dr Montek Singh Ahluwalia, said, "Airport development would be done through a combination of public-private partnership (as in the case of Delhi and Mumbai), only through public funding (in the North-East sector) or by private funding." The Government is hoping to award the bids for the Delhi and Mumbai airports by the middle of 2005.

The Civil Aviation Minister, Mr Praful Patel, added that 25 major airports have been identified and 55 others could go in for privatisation. "In all, development of 80 airports will be completed in the next five years."

The Government is also planning to set up an independent regulator for the sector by January. This is part of the comprehensive civil aviation policy spelt out. "The regulator will look into the economic aspects of the business as well as enable settlement of disputes," said Dr Singh.

Meanwhile, there are other issues such as immigration, customs clearance and city access that are not directly under the Ministry of Civil Aviation. An empowered committee of secretaries, headed by the Cabinet Secretary, Mr B.K. Chaturvedi, would be formed by February to tackle these issues. This committee will also continue to monitor the progress of airport modernisation.

The Government has also decided to revamp the board of Airports Authority of India (AAI). "Independent directors will be inducted and we will try to ensure better corporate governance as well as professionalism," said Dr Singh. The AAI would however, continue to remain under Government ownership.

On the mobilisation of funds, Dr Ahluwalia said, "We hope that the public-private partnership for Mumbai and Delhi will generate additional resources that will accrue with the AAI. Also, the AAI is capable of raising money from the market."