PM panel favours AAI arms for non-metro project
The government is likely to create fully-owned subsidiaries of Airport Authority of India (AAI) for modernisation of ‘larger’ non-metro airports.
By Sunny Verma & G Ganapathy Subramaniam, TNN |
NEW DELHI: The government is likely to create fully-owned subsidiaries of Airport Authority of India (AAI) for modernisation of ‘larger’ non-metro airports.
The prime minister’s Committee on Infrastructure has suggested that such 100% subsidiaries may be created for development and operation of larger non-metro airports.
The government is also looking at outsourcing of key functions like cargo management at these airports would continue to be managed by AAI.
AAI has been given the mandate to independently develop the ‘airside’ of 35 non-metro airports at an estimated cost of Rs 5,500 crore. Private participation is allowed for city-side development at this airport, estimated to cost Rs 1,500 crore.
A public-private participation (PPP) model is being created for joint venture development of city-side amenities by AAI in association with private partners.
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Among the 35 non-metro airports, government sources said Nagpur, Lucknow, Ahmedabad, Bhubaneshwar and Amritsar were large airports having land area over 700 acres. Nagpur is the largest with more than 1400 acres of land, followed by Lucknow, which has over 1100 acres. Lucknow also has the largest land (158 acres) available for city-side development. It is learnt that 100% subsidiaries of AAI shall be created for upgradation of these airports.
Ahmedabad and Bhubaneshwar have more than 900 acres and 800 acres of land, respectively, the sources said. Land available at size other airports varies from a low of 30 acres to as high as 700 acres. The fully-owned subsidiaries of AAI are expected to handle development of the large airports.
The civil aviation ministry is also planning to invite expressions of interest (EoI) from private parties soon for modernising the 35 non-metro airports.
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