New Delhi: The ministry of civil aviation has set the ball rolling for another round of airport privatisation by announcing the request for qualification (RFQ) process for airports in Chennai and Lucknow. The metro airports of Chennai and Kolkata and smaller airports in Lucknow, Ahmedabad, Jaipur and Guwahati are also to be bid out. In contrast to the earlier privatisation of airports in Delhi, Mumbai, Hyderabad and Bangalore, the terminals on offer have all been modernised by the Airports Authority of India (AAI). The construction element is less, reducing chances of massive cost escalation, as occurred in Delhi and Mumbai.
The Airports Economic Regulatory Authority (AERA) has set the user development fee (UDF) for Kolkata and Chennai. UDF will also be set for non-metro airports before bidding is initiated, with UDF escalation indexed to inflation. The AERA will play a key role in ensuring reasonable handling and parking charges for airlines, issues that bother users of airports modernised under the earlier round of privatisation. The AAI is offering 30-year operation and management contracts for Chennai and Lucknow. Eleven firms have evinced interest. Bidders will offer revenue share to the AAI. No entity may receive more than two contracts; no entity may receive both metro contracts; no entity may receive more than one contract out of the three international airports at Ahmedabad, Chennai and Kolkata.
01/10/13 Business Standard
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The Airports Economic Regulatory Authority (AERA) has set the user development fee (UDF) for Kolkata and Chennai. UDF will also be set for non-metro airports before bidding is initiated, with UDF escalation indexed to inflation. The AERA will play a key role in ensuring reasonable handling and parking charges for airlines, issues that bother users of airports modernised under the earlier round of privatisation. The AAI is offering 30-year operation and management contracts for Chennai and Lucknow. Eleven firms have evinced interest. Bidders will offer revenue share to the AAI. No entity may receive more than two contracts; no entity may receive both metro contracts; no entity may receive more than one contract out of the three international airports at Ahmedabad, Chennai and Kolkata.
01/10/13 Business Standard
