Operators’ dream of exploiting realty in airports nixed

New Delhi: The civil aviation ministry’s move to let private airport operators gain access to a larger part of land leased by Airport Authority of India for commercial exploitation has been dealt a setback by the Attorney General.
The ministry had recently sought Attorney General Goolam E Vahanvati’s opinion if Airport Authority of India (AAI) can be allowed to use land for commercial purposes that are unconnected with the scope of airport development and management. These could be golf courses, business or hi-tech parks, office accommodation, leisure facilities, sports and shopping complexes, or even convention centres.
Vahanvati said he would give an opinion only if the ministry came through the Empowered Group of Ministers (EGoM). He went by the precedence set by his predecessor Milon Banerji, who had five years ago on the EGoM’s reference, opined that AAI cannot take such a call. This required an amendment to the Airports Authority of India Act, 1994, Banerji had said. The law ministry has endorsed Vahanvati’s stance.
13/05/10 Smita Aggarwal/Maneesh Chhibber/Indian Express

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Categories: Airports May 2010