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Ashwini Phadnis

New Delhi , Nov 11

IN spite of a proposal pending before the Union Cabinet to increase the FDI levels in airports to 100 per cent through the automatic route, the Government will follow the same route for modernisation and restructuring of Chennai and Kolkata airports as has been adopted for redoing the airports in Delhi and Mumbai, senior officials said on Friday.

"The Ministry of Civil Aviation is keen that the Airports Authority of India (AAI) have a role in the airport restructuring process in the four major metros. The modernisation of Chennai and Kolkata will be taken up soon after the process begins in Delhi and Mumbai," a Government official said.

The Prime Minister, Dr Manmohan Singh, has already given his `in-principle' clearance for the restructuring of the airports in Chennai and Kolkata.

The Government has decided that for the restructuring of Delhi and Mumbai airports, AAI and public sector undertakings will hold 26 per cent stake in the project while the remaining share will be with the private sector.

The level of FDI for consortium participation in restructuring Delhi and Mumbai airports has been pegged at 49 per cent.

The Government has placed a cap of 10 per cent on the equity that a scheduled airline can hold in the project, while foreign airlines have been barred from picking up any equity at all.

On the proposal before the Union Cabinet to increase the FDI levels in airports to 100 per cent through the automatic route, officials said that the Ministry was keen to ensure that the existing sectoral caps in aviation are maintained.

Currently, 100 per cent FDI is allowed in greenfield airports although the project has to be cleared by the FIPB.

The Government has drawn up a major plan for restructuring airports around the country. Apart from the restructuring of the four metro airports, the Government plans to develop secondary airports into world-class entities.

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