Airport privatisation only after elections: Aviation Ministry

A parliamentary panel had opposed the govt's decision of privatising six airports

Privatisation of six major airports, including Chennai and Kolkata, has been put on the back-burner and will now take place only after the elections, a top official in the Ministry of Civil Aviation said.

Civil Aviation Secretary Ashok Lavasa said that the move to privatise six major airports in the country will be taken post elections.

A parliamentary panel had opposed the government's decision of privatising six airports -- Kolkata, Chennai, Lucknow, Jaipur, Ahmedabad and Guwahati.

Standing Committee on Transport, Tourism and Culture headed by CPI(M) leader Sitaram Yechury recommended that instead privatising the airports, state-run Airports Authority of India (AAI) should form a subsidiary or a special purpose vehicle to grant management contracts to entities having expertise in the field.

The government had in September last year decided to allow private parties to pick up 100% equity stake in operation and management of these six airports through the public-private partnership (PPP) mode.

Meanwhile, Lavasa said the Civil Aviation sector has three peculiar features, one of these being that airport construction and services provided by airlines are equal partners in Civil Aviation and both these parts provide a good opportunity for private partnerships.

Second peculiarity is that it encompasses safety, security, and satisfaction and the relative importance of none of these can be downsized.

He said the third peculiarity of the sector is that Civil Aviation is a responder as well as a driver of growth, he added while addressing at a CII event.