The Hindu Business Line : Rs 5,000-10,000 cr needed for airports' revamp

THE Government has estimated that Rs 5,000-10,000 crore would be required for the development and modernisation of each of the two metro airports in Delhi and Mumbai, said Mr Ajay Prasad, Secretary (Civil Aviation), on Thursday.

Presenting a bird's-eye view of the steps being taken by the Government to modernise the aviation sector, Mr Prasad said that to expedite the Indian Airlines (IA) fleet acquisition programme, the Ministry of Civil Aviation has started consultations with the Ministry of Finance and the Planning Commission to schedule the Public Investment Board (PIB) meeting to screen the proposal and take the process forward.

Mr Prasad was speaking to newspersons on the sidelines of CII's annual national conference.

On how the fleet acquisition plan would be funded, Mr Prasad said that there were two possibilities, including the Government coming up with "some instrument like a letter of guarantee" or pumping in some additional equity into both Air India and IA.

Besides, the airline could also look at raising funds from the market. "We will have to look at the most suitable debt package for the airline," he said, adding that it would largely have to be through debt that the airlines will have to raise.

Mr Prasad also said that IA would be able to conclude negotiations with the aircraft manufacturer within 3-4 months of obtaining final clearance. On Air India's fleet acquisition plan, the Secretary said that the Government hoped to receive the reworked aircraft acquisition plan by the end of November this year.

Besides, the Government is also working on finalising the civil aviation policy by the end of the year in order to chalk out a clear path for the development of the sector.