High-flyer AAI to get mini ratna status soon
Public sector undertaking Airport Authority of India (AAI) is likely to get mini ratna status shortly.
By TNN |
NEW DELHI: Public sector undertaking Airport Authority of India (AAI) is likely to get mini ratna status shortly. This would enable the airport operator execute its capex up to Rs 500 crore even without taking the Cabinet approval. Currently, any proposal of the authority requires the full Cabinet’s approval.
Some of the public sector companies which have been awarded this status are Coal India, Bharat Electronics and Hindustan Latex.
While the existing guideline for giving such status requires that the company should not receive any government funding, but the civil aviation ministry is all set to give its clearance to AAI, making it a special case. AAI gets financial support from the government for operating some economically unviable airports in the north-east.
“At present, even a small investment by AAI requires approval from the Cabinet committee on economic affairs (CCEA). Once the authority gets the mini ratna status it would have to get approval of its board only for capex of up to Rs 500 crore. It would also enable the airport operator to participate in the equity of another firm and allow to partner with other companies,” a top civil aviation ministry official said.
“The move would also increase the market image of AAI which would eventually help it get funds from the market,” he added.
Meanwhile, AAI on Thursday paid a dividend of Rs 112 crore to the government of India for the financial year 2006-07. It had earlier paid an interim dividend of Rs 60 crore to the government. The total dividend of Rs 172 crore by AAI is the highest dividend paid by it.
The dividend cheque was handed over by AAI chairman K Ramalingam to the civil aviation minister Praful Patel. Top officials of the ministry including civil aviation ministry secretary Ashok Chawla and AAI board members were also present on the occasion.
During 2006-07, AAI earned a total revenue of Rs 3,726 crore and a profit after tax of Rs 860 crore.
Some of the public sector companies which have been awarded this status are Coal India, Bharat Electronics and Hindustan Latex.
While the existing guideline for giving such status requires that the company should not receive any government funding, but the civil aviation ministry is all set to give its clearance to AAI, making it a special case. AAI gets financial support from the government for operating some economically unviable airports in the north-east.
“At present, even a small investment by AAI requires approval from the Cabinet committee on economic affairs (CCEA). Once the authority gets the mini ratna status it would have to get approval of its board only for capex of up to Rs 500 crore. It would also enable the airport operator to participate in the equity of another firm and allow to partner with other companies,” a top civil aviation ministry official said.
“The move would also increase the market image of AAI which would eventually help it get funds from the market,” he added.
Meanwhile, AAI on Thursday paid a dividend of Rs 112 crore to the government of India for the financial year 2006-07. It had earlier paid an interim dividend of Rs 60 crore to the government. The total dividend of Rs 172 crore by AAI is the highest dividend paid by it.
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The dividend cheque was handed over by AAI chairman K Ramalingam to the civil aviation minister Praful Patel. Top officials of the ministry including civil aviation ministry secretary Ashok Chawla and AAI board members were also present on the occasion.
During 2006-07, AAI earned a total revenue of Rs 3,726 crore and a profit after tax of Rs 860 crore.
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