http://www.financialexpress.com/fe_full_story.php?content_id=120264 Patel wants AAI to handle non-metro airports revamp
North Block feels PPP model make more sense PUMMY KAUL & KG NARENDRANATH NEW DELHI, MARCH 12: Stung by the row over the award of Delhi and Mumbai airport revamp projects to private parties, the civil aviation ministry has proposed to drop the public private partnership (PPP) model for funding of non-metro airports modernisation. In a note to the finance ministry, the civil aviation ministry has said that the Airport Authority of India (AAI) would finance the modernisation of as many as 43 non-metro projects - including the development of the non-operational areas - out of its own resources. This marks a significant digression from the earlier plan that the AAI would tie up with private firms for development of the "city-side" of the airports, even as the entire operational area - runway, taxiway, apron, communication and navigational aids and air traffic management - would remain with the authority. The finance ministry, however, is unlikely to favour the new proposal. North Block feels that to call such partnerships privatisation is a "misnomer," as the operational assets and the right to spend and earn on them would rest with the AAI. "Anyway, the assets remain with the AAI. So why call such PPPs privatisation," asked an official. As per the original plan, the AAI would have held a minimum of 26% equity in the joint ventures for city-side development in the form of assets. [contd below at*] ==== On A Troubled Runway THE TUSSLE AAI would finance the modernisation of as many as 43 non-metro projects Digression from the earlier plan that the AAI would tie up with private firms for development North Block feels that to call such partnerships privatisation is a "misnomer," as assets remain with the AAI THE NEED Proposal to develop non-metro airports was mooted way back in 2002 Main objective was to upgrade the airports to make them compatible with international standards Airports sector requires funds to the tune of Rs 40,000 crore for modernisation over the next 3-5 years Private sector along with financial institution and state governments would have held the balance equity. ==== *The proposal to develop non-metro airports was mooted way back in 2002 by the ministry of civil aviation when it circulated a concept paper for the city side development and enhancement of non-aeronautical revenues of selected non-metro airports. The main objective was to upgrade the airports to make them compatible with international standards in terms of facilities and services. According to industry estimates, the airport sector requires funds to the tune of Rs 40,000 crore for modernisation over the next 3-5 years. The first ten non-metro airports identified for development are Ahmedabad, Amritsar, Guwahati, Jaipur, Udaipur, Thiruvananthapuram, Lucknow, Goa, Madurai and Mangalore. -------------------------------- Looks like the Civil Aviation Ministry is just dithering over upgradation of non-metros. Nothing seems to be happening on the ground as far as Goa/Dabolim itself is concerned (i.e. land allottment by Defence for terminal and aircraft parking etc etc).
