AAI may get to bid for airports

Privatisation model likely to be dropped to placate Left.

In what may be a compromise aimed at pleasing the Left parties, the government seems to have dropped the privatisation model for modernising airports in the country.

Instead of the model being followed for the airports in Delhi and Mumbai "" which triggered agitation by airport employees "" the government is likely to allow the Airports Authority of India (AAI) bid independently for airports.

The government expects that this will placate the Left parties "" particularly in the case of Kolkata and Chennai airports. At the same time, the government is exploring other options, including a public-private partnership model for the modernisation process.

Kolkata and Chennai are part of the long list of airports "" which also includes 35 non-metro airports "" that the government plans to modernise in phases.

If AAI is allowed to bid for the airports, the issue of an airport partner in the bidding process will also be taken care of, given that AAI is the only airport operator in the country.

As per present norms, any company wanting to bid for an airport needs to have an airport partner. It was this condition which saw bidders for Delhi and Mumbai airports look at overseas airport companies as joint venture partners.

"The AAI has reserves which can be used for bidding for modernisation of the airports. It will also give AAI an equal standing with the other airport bidders," said a government official.

The government has also assured the Left parties that notwithstanding its model of execution, AAI employees will not lose jobs.