Financial Daily from THE HINDU group of publications
Tuesday, Feb 28, 2006
Industry & Economy
Logistics - Infrastructure
Delhi, Mumbai airports revamp to begin mid-year
`In-principle' decision on Chennai airport revamp taken
READY TO TAKE OFF: The Delhi and Mumbai airports revamp will cost Rs 7,961 crore and Rs 6,131 crore, respectively.
New Delhi , Feb. 27
The process of modernisation and restructuring of the Delhi and Mumbai airports is set to get under way by the middle of this year with the handover of the two airports to two separate joint venture companies, the Economic Survey indicated.
"On a preliminary basis, it has been estimated that a capital investment of Rs 7,961 crore for the Delhi airport and Rs 6,131 crore for the Mumbai airport would be required over a 20-year period in four stages of five years each," the Survey said.
The estimates, however, do not include cost of likely relocation of some of the assets and removal of encroachments.
The Survey also said that an `in-principle' decision has been taken to modernise the Chennai airport through the joint venture route.
Proposals to set up greenfield airports in Navi Mumbai, Kannur in Kerala, Ladhowal near Ludhiana, and Pakyong near Gangtok are in the pipeline.
The Airports Authority of India (AAI) is also considering development of non-metro airports in many cities, the Survey said.
The Government has already received the techno-economic feasibility study from the Global Technical Advisors and the Indian Financial Consultants for the development of 10 non-metro airports, including those at Madurai, Mangalore, and Thiruvananthapuram.
"The works for these 10 non-metro airports are being taken up in a phased manner. The terminal building and associated infrastructure like car park and roads and air side work, at an estimated cost of Rs 1,437 crore for phase I and extending till 2008, will be taken up by AAI."
In addition, the AAI has identified 20 other non-metro airports for development and is in the process of appointing GTA and IFC to carry out the techno-economic feasibility studies.
To ensure that the proper tariffs are charged at the airports and to ensure that they meet international standards, the Government is also making efforts to set up an independent Airport Economic Regulator.
The Survey said that the various policy initiatives taken by the Government have had an impact on airline traffic, with domestic passenger traffic growing by 24.2 per cent and international passenger traffic by 18 per cent during April-December this year, compared to the previous period.
Similarly, international and domestic cargo recorded growth of 11.7 per cent and 6.6 per cent respectively during April-December 2005.
The growth recorded is the second highest in the world, after China, the Survey added.
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