The Hindu Business Line : Non-metro airports: ‘Deviation’ from panel decision questioned

The Committee on Infrastructure had in June 2006 decided that the AAI would undertake the airport-side development while the city-side development would be undertaken through private-public partnership.

Our Bureau

New Delhi, Aug. 21 The Parliamentary Standing Committee on Transport, Tourism and Culture has questioned how an inter-ministerial committee headed by the Secretary, Civil Aviation, has “deviated” from the decisions and directions of the Prime Minister-headed Committee on Infrastructure (CoI) on the airport-side development of 35 non-metro airports.

A report presented to the Chairman of the Rajya Sabha, on Wednesday has pointed out that the Committee on Infrastructure had in June 2006 decided that the Airports Authority of India would undertake the airport-side development, including terminal building, while the city-side development would be undertaken through private-public partnership.

However, the inter-ministerial committee, it was found, decided to include private operators for specific projects such as maintenance of terminal building, development and operation of cargo and real estate development.

It also decided that maintenance of the terminal building would include equipment and utilities.

“The (Parliamentary) Committee feels that this is a deviation from the decision of the CoI and fails to understand how the inter-ministerial committee can deviate from the decisions/directions of the CoI,” the report has said.

It has called on the Prime Minister’s Office to issue clarifications on whether the inter-ministerial committee had the approval of the CoI to deviate from what had been decided.

In case, no clearance had been taken, the PMO must “intervene” and ensure that commercial operations of the terminal buildings are done by the AAI, the report has said.

The Parliamentary committee has also said that it does not agree with the logic that modernisation of airports can be better managed only through privatisation.

While noting that greenfield airports, which are proposed to be handed over to private parties, are largely financed by the AAI, State Governments and Indian financial institutions, the Committee wonders why, if the private players can manage the necessary investments, AAI cannot be allowed to pursue the same business strategy.

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