• Investment World
• eWorld
• Catalyst
• Mentor
• Life
• Canvas
• Praxis
• Urban Pulse
• Brand Quest

Stocks

• Quotes
• SE Diary
• Scoreboard
• Open-End Mutual Fund

Port Info

• Ships in Ports
  
  

Archives

• Yesterday
• Datewise
• Resources

Group Sites

• The Hindu
• Business Line
• The Sportstar
• Frontline
• The Hindu eBooks
• The Hindu Images

Ashwini Phadnis

New Delhi , Jan. 3

WITH the proposed modernisation of Delhi and Mumbai airport going on track, the Ministry of Civil Aviation is set to approach the Union Cabinet to seek its nod for restructuring of Chennai airport.

Sources told Business Line that the proposal for restructuring of Chennai airport could be placed before the Union Cabinet in either February or March this year. The Government has already indicated it is committed to the creation of a world-class airport in Chennai.

During a meeting with the Prime Minister, Dr Manmohan Singh, recently, the Minister for Civil Aviation, Mr Praful Patel, had indicated that the restructuring of Chennai airport would also be taken up through the joint venture route.

The restructuring of Chennai airport is unlikely to be a lengthy process for a variety of reasons, including the fact that the process will be taken up only after the draft concession agreement for restructuring of Delhi and Mumbai airports is finalised. The draft concession agreement for Delhi and Mumbai airports is to form the basis for agreements for restructuring of other metro airports, including Chennai.

Besides, the State Government is showing keen interest in expediting the project. The need for getting the Chennai airport restructuring programme off the ground at the earliest assumes importance as new greenfield airports were coming up in Bangalore and Hyderabad and a major delay could affect the viability of the proposed modernisation programme, sources indicated.

As in Delhi and Mumbai airport restructuring projects, the prospective joint venture partner in the Chennai airport modernisation programme would be allowed to hold a 74 per cent stake with a foreign direct investment (FDI) cap of 49 per cent. The rest of the stake will be with a public sector undertaking.

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
Ministry set to seek Cabinet nod for Chennai airport restructuring

Copyright © 2005, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line