Indian Government relooking into the privatisation process of six major airports

28 September 2014 (Last Updated September 28th, 2014 18:30)

The Indian Government is taking another look at the airport privatisation process initiated under the previous United Progressive Alliance (UPA) government.

The Indian Government is taking another look at the airport privatisation process initiated under the previous United Progressive Alliance (UPA) government.

Civil aviation minister Ashok Gajapati Raju said that there was a need for a fresh round of consultation with airport developers, airlines, passenger associations and travel operators before reaching a final conclusion on the model concession agreement for the construction and expansion of these airports through public-private partnership (PPP).

"Discussions are being held between different stakeholders to form a model agreement to ensure a more transparent process and to avoid grievances of stakeholders at a later stage."

The PPP process for the modernisation of the airports at Kolkata, Chennai, Jaipur, Guwahati, Ahmedabad and Lucknow had been launched by the UPA government in 2013.

However, the process could not be completed owing to differences between the Indian Civil Aviation Ministry and the planning commission on the model concession agreement and various issues including revenue sharing and the period of lease. The process has been on hold since the general elections were announced.

The Press Trust of India said that according to official sources, discussions are being held between different stakeholders to form a model agreement to ensure a more transparent process and to avoid grievances of stakeholders at a later stage.

High airport charges and other related issues that are affecting airlines have forced the concerned parties to think about holding fresh discussions to ensure that the privatisation did not increase airport costs and charges.

A process of relooking into matters like revenue-sharing model and the master concession agreement in public-private partnerships in airports is being carried out by an inter-ministerial group, which comprises officials from the finance and civil aviation ministries and the planning commission.