Approval given for mordernisation of 35 non-metro airports

New Delhi, June 8: The Committee on Infrastructure, headed by Prime Minister Manmohan Singh, today gave an in-principle approval for the modernisation of 35 non-metro airports, without taking a final view on the manner to proceed on modernisation of Kolkata and Chennai airports.

Planning Commission Deputy Chairman Montek Singh Ahluwalia told newspersons that a final view on the modernisation of the two airports would be taken in three months time.

The Plan Panel Deputy Chief said the focus of the discussion in the meeting held this morning was financing and methodolgy for modernisation of 35 non-metro airports.

Dr Ahluwalia said the committee clarified that the aeronautical side of the airport development will be undertaken by the Airports Authority of India (AAI), while the city side development will be under the public-private partnership.

He said the AAI has categorically stated that the development of these airports will be from its internal resources and the committee has decided to allow borrowings from the market based on the prospective stream of revenues.

It was also agreed that state governments can pitch in if they so desire, but stated that whether they will be given an equity stake was a decision that will be taken in future.

Dr Ahluwalia said a case-by-case approach has to be adopted and said he personally favoured participation by the state governments.

The modernisation of Kolkatta and Chennai airports has been held back as a result of the controversy raised by the left leadership contending that the modernisation should be carried out the AAI and not through joint ventures as has been done in the case of Delhi and Mumbai airports.

The well known economist said the committee took stock of the fact that the Civil Aviation Policy was now ready and would go to the cabinet by June.

Besides, the draft Airports Regulatory Bill would be brought before the Cabinet in the next session of Parliament.

He said the government's expectations was that many of the 35 airports would be completed by the Eleventh Plan.

The meeting at 7, Race Course Road, the residence of the Prime Minister, was attended by all the ministers of the committee, except Railway Minister Lalu Prasad.

UNI