"Indian airport privatisation plan ready"

Monday, August 11, 2003

Airport privatisation plan ready
The Times of India


CHENNAI - The ministry of civil aviation has drafted the blueprint for the
privatisation of New Delhi and Mumbai airports and forwarded the proposal
for scrutiny by the cabinet.

Top civil aviation ministry sources told The Times of India that under the
broad framework, private parties will be allowed to own 74 per cent equity
stake in the airports (which will be spun off into companies) while the
balance 26 per cent would be held by the Airport Authority of India. The
proposal will "shortly" be placed before the Union cabinet for approval,
they said.

Rajiv Pratap Rudy, Union minister for civil aviation, however neither
confirmed nor denied it. He said the cabinet would decide on the
privatisation of airports.

The second phase would see the privatisation of Chennai and
Thiruvananthapuram airports, the sources said. Malaysia and Singapore are
evincing interest in Chennai airport. "Singapore has a lot of interest in
Chennai. We will prod them to invest in the airport," the official added.

The privatisation, part of a larger reforms agenda being pursued by the
government, is considered a milestone in the history of India's civil
aviation. It will not only pave the way for the setting up of world-class
airports at New Delhi and Mumbai, but will also provide similar benefits to
smaller cities. This move is the first step in a major process of reforms in
the civil aviation sector aimed at the improvement of infrastructure.

Earlier, addressing a press conference, the civil aviation minister sought
to allay apprehensions on security, saying that the air traffic control and
security checks would rest with the government even after privatisation.

He was in Chennai to review the performance of the aviation industry here.
Also on proposal is to build a separate area in all the airports to receive
coffins of soldiers who die serving the country.


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