Government to privatise 35 non-metro airports

New Delhi, June 8 : The government has decided to privatise and modernise 35 non-metro airports after the prime minister's task force on infrastructure met today.

The exercise will cost about Rs 8,000 crore, civil aviation minister Praful Patel told reporters after the meeting.

''The development of 35 non-metro airports will be done by the Airports Authority of India (AAI). Work will start within one year and will be completed by 2008-09,'' he said.

No final decision was taken on modernising or privatising airports in two other major air hubs, Chennai and Kolkata.

Prime minister Manmohan Singh will appoint a group of experts to look into the modernisation of Kolkata and Chennai airports. They will consult state chief ministers on what route to be adopted for the move.

Mr Singh also directed Mr Patel to improve airports and air connectivity in the northeast. Arunachal Pradesh and Sikkim will also get new airports.

Last week, all four Left parties had written to the prime minister arguing that Kolkata airport should not be handed over to any private company as the AAI is competent to undertake the works. The AAI has already started giving the Kolkata airport a makeover. It has got Airports de Paris to draw up a detailed design for a new terminal building.

A budget of Rs 750 crore has been sanctioned to build a fully automated international cargo terminal, new runways and even a second domestic terminal if needed.

The Delhi airport has already been taken over by a consortium led by the GMR group and including German airport operator Fraport and Eraman Malaysia.

The contract to revamp Mumbai -- the busiest airport in the country -- was won by a consortium led by GVK Industries Ltd and the Airports Company of South Africa.

Both the Delhi and Mumbai airports handled nearly half the estimated 50 million passengers who travelled by air in the country last year but fall well below international standards.

UNI