New Delhi: Even as the government has brought back on the table its plans to privatise Chennai and Kolkata airports, it has nearly halved fresh investments required to be made by private concessionaires for developing the airports at Chennai, Kolkata, Jaipur and Ahmedabad in next three to five years.
The move has raised questions from certain quarters within the ministry itself over the need for putting them up for privatisation. A senior official in the Airports Authority of India (AAI), said, “What is the need of privatising Chennai and Kolkata airports when we have already made huge investments in upgrading them?”
AAI has already invested Rs 2,700 crore and Rs 2,400 crore for expanding capacity and upgrading Kolkata and the Chennai airports, respectively. AAI is sitting on cash reserves of Rs 2,400 crore and, if required, can raise resources to meet planned development works at Chennai and Kolkata (totalling Rs 867 crore).
“Service parameters can be set for each airport and if AAI if unable to meet them, then the government can devise a mechanism to penalise us. There is no need to privatise all airports which have good traffic potential,” the official. said. He, however, clarified that AAI has not written to the aviation ministry yet opposing the privatisation programme.
The move to privatise Chennai and Kolkata airports marks a turnaround for the government, which had in November last year decided to bring in professional firms to merely manage the airports as AAI has already incurred expenses of over Rs 5,100 crore in expanding and upgrading the two facilities. This too when capital requirements and scope of projects have been curtailed at both airports.
21/01/15 Indian Express
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The move has raised questions from certain quarters within the ministry itself over the need for putting them up for privatisation. A senior official in the Airports Authority of India (AAI), said, “What is the need of privatising Chennai and Kolkata airports when we have already made huge investments in upgrading them?”
AAI has already invested Rs 2,700 crore and Rs 2,400 crore for expanding capacity and upgrading Kolkata and the Chennai airports, respectively. AAI is sitting on cash reserves of Rs 2,400 crore and, if required, can raise resources to meet planned development works at Chennai and Kolkata (totalling Rs 867 crore).
“Service parameters can be set for each airport and if AAI if unable to meet them, then the government can devise a mechanism to penalise us. There is no need to privatise all airports which have good traffic potential,” the official. said. He, however, clarified that AAI has not written to the aviation ministry yet opposing the privatisation programme.
The move to privatise Chennai and Kolkata airports marks a turnaround for the government, which had in November last year decided to bring in professional firms to merely manage the airports as AAI has already incurred expenses of over Rs 5,100 crore in expanding and upgrading the two facilities. This too when capital requirements and scope of projects have been curtailed at both airports.
21/01/15 Indian Express
