PPP model for Sikkim Airport may be scrapped

Sikkim: Plans for developing a Greenfield Airport at Sikkim through the Public-Private Partnership route may fall through. A Sikkim government official, on condition of anonymity, said that the airport may now be developed by the Airports Authority of India (AAI). Although the Sikkim government is in discussions with the Centre to pursue the PPP model, according to the official source, there are practically no chances of matters going Sikkim's way.
In June, 2007, Sikkim had planned to develop the Greenfield Pakyang Airport in East Sikkim district on PPP basis, making it the state's first ever airport. About 15 entities, including Gammon India and GMR Group, had submitted their EOIs. The state had planned to adopt the PPP route, on the lines of the new airports at Bangalore and Hyderabad, at a time when the PPP model was seen failing in the case of the Chennai and Kolkata airport modernisation and privatisation projects.
The Pakyang Airport was to be developed by a public-private consortium, with the private developer holding 74 per cent equity and the state government and AAI holding the remaining 26 per cent.
25/12/07 Venugopal Pillai/TravelBizMonitor

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Categories: Airports Dec 2007, New Dec 2007