Mumbai/New Delhi, Feb 27 (PTI) The government hasinitiated the process of corporatising Air Traffic Control(ATC) and an independent body to run the services is likelyto become functional by June this year.
The move to set up the new entity comes almost threeyears after a high-powered committee, headed by former CabinetSecretary Naresh Chandra, had recommended hiving off airtraffic services from the Airports Authority of India (AAI)and bring it under an independent corporate entity.
The proposed entity, to be called Air NavigationServices (ANS) Corporation, is likely to become functional byJune, though it would remain as a wholly-owned subsidiary ofthe state-run AAI for a few years, official sources told PTI.
It would take at least another three years before theANS Corporation is converted into a totally independent bodyunder the Civil Aviation Ministry, they said.
Once the corporation becomes a separate entity, it wouldhave its own Board headed by a Chairman.
"The government has already appointed a Member (CNS) inthe AAI Board to look after the operational aspects of theproposed ANS Corporation," the sources said.
Besides, AAI''s Executive Director (Finance) has beenentrusted with the task of carrying out a study of itsfinancial viability. "The way things are moving now, it islikely to be functional from June this year," they said.
Currently, air traffic services, which comprise ATC andCommunication, Navigation and Surveillance (CNS), are part ofthe AAI.
However, the government intends to segregate them sothat AAI can focus on its core competence area of airportdevelopment and maintenance, the sources said.
Segregation of these services was also important as itwould avoid conflict of interest between airport operators andthe ATC/CNS, they said.
All these services together contribute over 35 per centin AAI''s total revenue in the form of Route NavigationFacility Charges (RNFC) and terminal navigation charges fromthe airline operators.
The sources said that AAI''s Executive Director (HR) wasworking on the human resources planning for the proposedcorporation, which will be headquartered in Delhi.
One General Manager level officer from each region wouldbe pulled out to look after the operations in four respectivezone, they said.
AAI currently has a workforce of around 22,000comprising 14,000 employees and 8,000 officers. Of these,close to 4,000 are from the ATC and CNS.