Union Gov to allow investment in airport infrastructure

Kolkata: The Centre will be announcing a new policy to facilitate private participation in airport infrastructure development by the end of March, the Union Civil Aviation Minister, Mr Praful Patel, said here today.

A committee has been formed in this regard, headed by the Prime Minister, Dr Manmohan Singh, which will finalise the policy after the Cabinet’s approval. A steering committee will be formed soon to promote single window clearance for all future infrastructure development projects, he said.

The committee comprises, apart from the Prime Minister, the Finance Minister, the Deputy Chairman of Planning Commission and Mr Praful Patel. The Civil Aviation Ministry will act as the nodal agency.

Pact signed:

Mr Patel was here today for the signing of a Technical Service agreement between the Bengal Aerotropolis Projects Ltd (BAPL) and Changi Airports International (CAI) for the upcoming airport which will be a part of the Durgapur Aerotropolis project. The airport will be India’s first privately-owned facility, he said.

An investment of Rs 150 crore will be made in the first phase out of the total investment 700 crore for building the airport. The airport will be operational after 30 months from the zero date, Mr Partha Ghosh, Director, BAPL, said. Changi however, will not have any equity stake in the venture and will act only as a technical partner, he added.

“Today’s policy involves a long process for approval of infrastructure development in airports. The new policy will emphasise on easing licensing norms,” the Minister said. The committee will also come up with a list of non-operational airports which the Centre plans to open up for private participation, he said.

Non-operational airports:

“We have around 40-45 non-operational airports in the country which we can open up for PPP through a transparent process We also need the private sector to join hands in building airports in smaller cities across the country,” Mr Patel said.

There are currently 82 airports operational in the country which can continue to be run by the Airports Authority of India. But for the closed-down airports private participation is welcome, the Minister said.

Mr Patel emphasised that private participation would not result in anyone losing employment. With regard to the ongoing agitation by the Airport Authority Employees’ Union against privatisation, he said, “not a single employee of the old Hyderabad and Bangalore airports will lose his job. We will see to it that their employment is secured under the AAI”.