After Myanmar, Sri Lanka, AAI may help develop airport in Nepal

NEWDELHI: After Myanmar and Sri Lanka, India is now trying to help Nepal develop an airport. The state-owned Airports Authority of India (AAI) has already signed agreement to prepare Detailed Project Report (DPR) for Kalay Airport in Myanmar and Palaly Airport, Sri Lanka.

According to two officials familiar with the matter, the authority, through the external affairs ministry, is in touch with the Nepal government to help it in the construction and operation of the airport. India is also open to allowing Nepal to use its airspace.

“We have received a letter from the Nepal government where they have in-principle agreed for India’s help in civil aviation sector. They want some relaxation in airspace wherein they can use Indian airspace regularly. Beside this, they are also planning new airports, where they will need help from India. We are in constant touch and an agreement (to this effect) is expected soon,” said an official of AAI who spoke on condition of anonymity.

On April 10, AAI signed an agreement with the Ministry of external affairs to prepare the first phase project report for the

development of Kalay Airport in Myanmar. The pact was touted as AAI’s effort at going global.

“Over a period of time, AAI had developed more than 60 airports in metro and non metro cities in India and now AAI wants to leverage its expertise in other countries on bigger scale. Sometimes we receive requests from the external affairs ministry and sometime we contact the country directly. The cost is not that important as, strategically, India wants some presence in these countries,” said a second AAI official who asked not to be named.

On September 17, AAI signed an agreement to draft a project report for the development of Palaly Airport in Sri Lanka. The move was widely seen as India’s effort to counter the growing influence of China, which has developed a huge port in Lanka.

The first official, who is part of the DPR process, said an AAI team will visit both the countries to conduct a feasibility study and may, in the future, also bid to develop the airports.

“Success of these agreements and projects depends on what is meant by strategic. Air connectivity with neighboring countries is a key priority for India’s neighborhood first policy, but it is doubtful whether simply building and running airports will be beneficial to increasing e crossborder air linkages. India’s private airlines are also dependent on distant Singapore and the Gulf for crucial RMO (repair, maintenance, overhaul) facilities. By investing in RMO bases in South Asia, AAI would help to cut operational costs and incentivise regional air connectivity. On the other hand, AAI should not be forced to make investment decisions that are financially unsustainable, merely to deny China these projects,” said Constantino Xavier, fellow, foreign policy at Brookings India.

“There are no details to be shared at this moment. It will be shared as and when there is any development,” AAI said in an email reply.