Kolkata: The airports in Kolkata and Chennai will not be privatized. The decision was taken at a meeting at the Prime Minister's Office on Tuesday.
Confirming the development, Airports Authority of India chairman RK Srivastava told TOI on Wednesday that both airports would continue to be developed, operated and managed by AAI.
Sources said AAI could offer management contracts to private parties to run certain operations at Kolkata airport for a fixed fee but there would be no lease agreement. The AAI has already spent over Rs 5,000 crore in modernizing the two airports.
The government's decision seems to have been influenced by fears of a massive hike in airport charges following privatization. Airlines and trade unions had vehemently opposed %the move saying it would be detrimental to passenger growth in the country. The Bengal government's opposition to privatization of the Kolkata airport also seems to have played a part.
13/08/15 Subhro Niyogi/Times of India
To Read the News in full at Source, Click the Headline
Confirming the development, Airports Authority of India chairman RK Srivastava told TOI on Wednesday that both airports would continue to be developed, operated and managed by AAI.
Sources said AAI could offer management contracts to private parties to run certain operations at Kolkata airport for a fixed fee but there would be no lease agreement. The AAI has already spent over Rs 5,000 crore in modernizing the two airports.
The government's decision seems to have been influenced by fears of a massive hike in airport charges following privatization. Airlines and trade unions had vehemently opposed %the move saying it would be detrimental to passenger growth in the country. The Bengal government's opposition to privatization of the Kolkata airport also seems to have played a part.
13/08/15 Subhro Niyogi/Times of India
