"Private airports in India is big idea for New Year"

Monday, January 1, 2007

Private airports is big idea for New Year 
By Pranab Dhal Samanta 
The Indian Express


New Delhi, India - Frustrated by the hurdles that land acquisition and the
politics around such issues pose in constructing new airports, the Civil
Aviation Ministry is preparing a bold new initiative in 2007 to allow
private airports to come up in the country. 

In short, private players can identify land, purchase it and build an
airport with the government just concerned with technical clearances. 

Confirming that his ministry is considering the idea, Civil Aviation
Minister Praful Patel said that this has become urgent given India's
economic growth and the ambitious goals for the future. "This concept has to
be looked at positively. It is becoming increasingly difficult for state
governments to acquire land... we have to look at bold steps next year." 

What the Ministry has in mind could transform the way airports have been
built and managed so far. The onus will be on the private entity to purchase
and acquire the land, which is unlike the current greenfield airports policy
where the State government has to ensure an encumbrance-free site for a
private consortium to develop. Currently, Puttaparthi in Andhra Pradesh is
the only private airport in the country. 

In greenfield airports, maximum private stake is 74 per cent whereas what is
being conceived will be a 100 per cent private airport. Once a private
entity brings such a proposal, sources said, it will also open up
possibilities to make the site available for other commercial ventures. This
could also lead to a Special Economic Zone, an export or cargo hub that
would give impetus to industrial development in a particular area. 

It will also end the monopoly of Airports Authority of India over airports
in the country. In fact, sources said, the Ministry is also open to idea of
letting private players purchase unused airstrips from the AAI and develop
it into airports. There are as many as 33 unused airports with the AAI.

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