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Our Bureau

New Delhi , May 20

With the current policy on airports allowing 100 per cent FDI in greenfield airports, the proposed new airport in Kolkata could be built entirely through foreign direct investment, senior Government officials have said.

"The West Bengal Chief Minister has already indicated that the State is keen on a greenfield airport. The current rules allow 100 per cent FDI in greenfield projects. So, theoretically speaking, the new airport could be 100 per cent through the Foreign Investment Promotion Board route," senior Government officials said.

However, briefing the media after a day long conference on `Public private partnership in infrastructure', the Secretary of Civil Aviation, Mr Ajay Prasad, said that the issue of what level of FDI the States were keen to allow in airport projects was not taken up. "There were no specific discussion on raising the FDI limit in existing airports."

Sources indicated that the issue of FDI levels to be allowed at Chennai and Kolkata would be taken up at a later date. "The State Governments have to first finalise the State support agreement. It is only then that the issue of how much FDI and through what route they want the development to be done would be discussed," officials said.

Funds required

Meanwhile, the Ministry of Civil Aviation has estimated that by 2010 more than Rs 40,000 crore would be required for the development of airports. This includes Rs 15,000 crore for modernising airports at Delhi and Mumbai and another Rs 5,000 crore for the development of Chennai and Kolkata airports. In addition, the development of seven greenfield airports including those at Bangalore, Hyderabad, Goa, Pune, Navi Mumbai and Greater Noida would require Rs 10,000 crore while close to Rs 7,000 crore would be required for the upgradation of 25 select airports.

Besides work has also been initiated on the development of 35 non-metro airports in a phased manner. The Government plans to follow a development approach for first 10 non-metro airports that would see the terminal building and airside being developed by Airports Authority of India while city side development would be through public-private partnership or land lease and revenue sharing, officials said.

More Stories on : Infrastructure | Foreign Direct Investment | Airlines

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No decision yet on FDI in Kolkata, Chennai airports

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