Govt keen to put Chennai and Kolkata airports on block

Civil aviation minister Ashok Gajapathi Raju Pusapati is keen to push through the privatisation of airports starting with Chennai and Kolkata, but the opposition from state governments and the strong unions of Airports Authority of India (AAI) have emerged as a hurdle.

The minister told MAIL TODAY: "We are not against privatisation… We are looking at functional efficiency. If the public sector can assure efficiency and do it then it is good. Why not ? If they can't. Definitely there is an option open. Nothing will be done secretively".

Coming out in favour of privatisation of airports, he said "Everybody is accountable, be it the public sector or a private developer. A private party does not take away an airport in his pocket and run away. The infrastructure is still within the country and is governed under an Indian law. We are not in a hurry. It has to be done and it will be done. However, there is a procedure which is to be followed".

The minister said that the ministry of civil aviation would like to be involved in policy making. "We will set performance parameters," he added. The government is also keeping on hold the new civil aviation policy. It is understood that once the government comes out with some clarity on privatisation of airports, it would then release the new civil aviation policy.

"We have not fixed any timeline for the new civil aviation policy. We would like it to come out with a new policy in a reasonable time-frame so that it becomes effective. We have asked them (AAI and the ministry officials involved) to formulate a fresh model concession agreement. Now we have experience with the privatisation of airports." "What were the agreements with these private developers. All these issues and shortcomings will form part of the model concession agreement which will set rules for new takeovers of airports by private developers," he added.

Pusapati's predecessor Ajit Singh had identified six airports including Chennai and Kolkata which were to become the first such airports where private developers would have been able to acquire 100 per cent equity on a 30-year lease basis.

In association with Mail Today