"Indian airport modernization set for take off"

Tuesday, July 13, 2004

Indian airport modernization set for take off
Asia Pulse


MUMBAI - The Civil Aviation Ministry has drawn up a Rs 50 billion
(US$1.1 billion) modernization plan for 15 airports, apart from the four
metros. 

"We have worked out plans to redo the 15 airports and everything would
be in place by end 2006," Civil Aviation Minister Praful Patel said
Saturday. 

In an informal chat with media, Patel said the funds required to
modernize airports, including in Jaipur, Udaipur, Lucknow and
Bhubaneswar, could also be raised through government bonds. 

Patel said nearly 10 foreign entities have shown interest in the
modernization plans of the Delhi and Mumbai airports where the foreign
direct investmnet (FDI) limit has been raised from 40 to 49%. Plans for
Chennai and Kolkata airports would be taken up later. 

He said all these airports together contribute 80% of the revenue to the
state-owned Airports Authority of India, which is the third largest real
estate holder in the country. 

He reiterated that no foreign airline would be allowed to take a stake
in an airport modernization plan or airline. 

Patel said necessary paper work is being expedited to sign a memorandum
of understanding for a Greenfield airport project near Hyderabad next
month. 

Patel said his aim was to "revolutionize" the industry and ensure that
the fleet acquisition plan of both state-owned Air-India and Indian
Airlines, refurbishing the aircraft and aviation policy would all be
ready by December-end.


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