Will PPP spell suc­cess for In­dian air­ports?

The Cen­tre is fi­nal­is­ing guide­lines for bring­ing op­er­a­tions and man­age­ment of air­ports un­der PPP model. Five air­ports are se­lected to be de­vel­oped un­der the ‘no-frills air­ports’ cat­e­gory.

Cargo Talk - - Aviation -

The Cen­tre is in the process of fi­nal­is­ing guide­lines for bring­ing op­er­a­tions and man­age­ment of some air­ports un­der the Pub­lic-Pri­vate-Part­ner­ship (PPP) model.

Th­ese op­er­a­tions are cur­rently un­der con­trol of Air­ports Au­thor­ity of In­dia (AAI). Civil Avi­a­tion Sec­re­tary

V So­ma­sun­daram said that the five air­ports se­lected to be de­vel­oped un­der ‘no-frills air­ports’ cat­e­gory would be op­er­a­tional in the next two years.

“The model (un­der PPP) is mainly de­vel­oped for the metro ci­ties. The re­main­ing air­ports are not in metro area. Th­ese are in medium ci­ties. For th­ese air­ports, we may need a re­vised model be­cause we will not have the kind of vol­ume which Mumbai, Delhi or Ban­ga­lore have. So we are work­ing on that,” So­ma­sun­daram said.

“Maybe within a month, we will come out with the guide­lines. It is in an ad­vanced stage. We need to change the guide­lines for the PPP model. Then, they will call for RFQ,” he said, dur­ing his re­cent visit to cy­clone-hit Visakha­p­at­nam.

Last Septem­ber, the Con­gressled UPA gov­ern­ment had de­cided to al­low pri­vate par­ties to pick up 100 per cent eq­uity stake in op­er­a­tion and man­age­ment of the six air­ports — Chen­nai, Kolkata, Guwahati, Ahmed­abad, Jaipur and Lucknow — through the PPP mode.

The move was ve­he­mently op­posed by the air­ports’ unions, al­leg­ing that it would re­duce the al­ready shrink­ing rev­enue of the AAI due to the pri­vati­sa­tion of coun­try’s two busiest air­ports — Mumbai and Delhi.

A par­lia­men­tary panel had last year also op­posed pri­vati­sa­tion of gov­ern­ment air­ports in the coun­try. How­ever, the present gov­ern­ment has re­port­edly de­cided to keep air­ports at Chen­nai and Kolkata out of the PPP model as of now.

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