Work on modernisation of Chennai airport next year

Work on modernisation of Chennai airport next year

Saturday, 19 November , 2005, 11:18

New Delhi: The Government plans to start work on modernisation and restructuring of the airports in Chennai and Kolkata next year, the Minister for Civil Aviation, Praful Patel, said here on Friday

"No decision has yet been taken on what method should be followed for upgrading the two airports. However, work would be awarded or started during 2006," the Minister said while addressing the Economic Editors' Conference.

The Government was also committed to developing airports in the non-metro cities and work had started on developing 35 such airports. The Minister said that the Airports Authority of India (AAI) was looking at raising funds to build these world-class airports.

"We would require about Rs 5,000-6,000 crore to upgrade the 35 airports. The funds will be garnered through internal and external resources. Work on these airports should roll out in 2006-07 and should be completed by 2008-09," Patel said.

The Ministry was also in discussion with the Planning Commission to see whether city-side development of land can be allowed at these airports, the Minister said. "We can have many things including hotels on the city side of these airports. There can be a public private partnership for the development of these airports," the Minister said. | Read more Finance news. |

On AI, Indian Airlines: Turning his attention to the steps being taken to strengthen Air India and Indian Airlines, Patel said that the two airlines would enter the market with an initial public offering by the first quarter of 2006. "We plan to offer some of the stock being divested to the employees. The exact amount of stock to be divested will be decided by the advisors. However, the airlines cannot divest more than 20 per cent as then they will cease to be public sector companies," the Minister said.

The Government has also initiated steps to ensure that the airlines are protected against rising fuel costs. "We are talking with the Ministry of Finance and the Reserve Bank to see whether airlines can be allowed to hedge on the price of the fuel that they uplift," Patel said.

The Minister indicated that the domestic aviation industry would require an investment of $30 billion by 2010-12 and about $50 billion during the 10-year cycle. "The aviation sector is one of the highest investment sectors in the country. The monies will be required to fund the fleet acquisition proposal of the airlines, setting of Maintenance, Repair and Overhaul and other facilities such as pilot training institutes," the Minister said on the sidelines of the Economic Editors' Conference here on Friday.

LINK