Revamp of non-metro airports a distant dream

Mumbai: India’s ambitious project to modernize 35 non-metro airports may miss its deadline, with the ministry of civil aviation deciding to revise its terms and conditions.
The ministry had already pre-qualified some companies, including Tata Power Ltd and Reliance Energy Ltd, for participating in the bidding process for the Amritsar and Udaipur airports. Lanco Infratech Ltd, Maytas Infra Ltd, GMR Infrastructure Ltd and Larsen and Toubro Ltd along with its international partner, were also shortlisted for the programme. The ministry had planned to upgrade 24 airports by 2009 and 11 by 2010, with a total investment of more than Rs10,000 crore.
"When the government first invited RFQs (requests for qualification), it planned to give the mandate to the winning bidder for commercial operations, maintenance of terminal buildings, cargo management and city-side development. Now, it wants to give only for cargo management and city-side development,” said a person familiar with the development.
"This will not only discourage international partners, but will also derail the non-metro airport modernization project,” he added, asking not to be identified.
A senior government official said nothing has been finalized on changing the terms and conditions, though there is a provision to do so.
The Airports Authority of India (AAI) has pointed out major human resources problems with the private companies taking over commercial operations and maintenance of terminal building, city-side development and cargo handling. “The fear of labour unrest and re-allocation of these AAI staff have resulted in changing the rules of airport modernization,” said a person familiar with the move. A senior executive of the Tata group, who did not wish to be identified, said this would send wrong signals to domestic and international investors.
14/06/08 P.R. Sanjai/Livemint

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Categories: Airports Jun 2008