Indians should control privatised airports: Parliamentary panel

NEW DELHI: The ownership of four metro airports, which are to be privatised through the joint venture route, should remain in the control of Indian nationals and foreign equity participation should not be allowed to exceed 49 per cent, a Parliamentary panel has recommended.
The Parliamentary Standing Committee on Transport, Tourism and Culture also recommended that a regulatory mechanism to fix the parameters for investment made on airports be set up before the Airports Authority of India (Amendment) Bill was passed by both Houses.
The Committee, whose 61st report on the Bill was tabled in Parliament last week, suggested that the money earned through airport privatisation should be spent only on undertaking developmental activities at other airports and not for general administrative purposes.
"The airports should remain in the control of Indian nationals, thereby protecting safety, security and sovereignty of the country," the report said, adding that the panel, therefore, recommends that foreign equity participation "should, under no circumstances, be allowed to exceed the limit of 49 per cent".
Expressing concern over the absence of a regulatory mechanism in the Bill for regulation of fees and levies of aeronautical charges by the private sector, the Committee felt that the Bill should contain a mechanism about "a regulatory body for fixing and checking the parameters defined for the investments made and improvement in the performance of the airports".
Appreciating the Civil Aviation Ministry''s proposal to create an Airport Economic Regulatory Authority "to provide an appropriate regulatory regime for all airports", it said this body "must be in place before the Bill is passed by Parliament and a suitable clause regarding regulation of tariff etc by the said authority should be incorporated in it".
Stating that the developmental activities at airports had been halted by the Ministry pending the privatisation process, the panel said the projects, which have already been sanctioned by the Ministry, should be allowed to continue.
Recommending the inclusion of provisions in the Bill to protect the interest of employees, it also suggested that "a more transparent interaction" should be held with employees'' representatives as the privatisation process "cannot succeed" without workers'' participation.