Govt pens Rs 6000 cr plan for 35 airports

The government is planning to develop 35 non-metro airports in the country under five clusters at a cost of Rs 6,000 crore and this is expected to completed by 2008-09. Global consultants for the project have been appointed for each airports.

"We are planning to develop 35 non-metro airports in five clusters with proper balance of profit making and loss making airports of the country. We have already appointed financial, technical and legal consultants for these 35 projects," Union civil aviation minister Praful Patel said here today.

Speaking at an interactive session organised by the Indian Merchants' Chamber (IMC), Patel said the development activities are expected to begin from 2006-07 and would be completed by 2008-09.

"The estimated investment for this 35 non-metro airports will be over Rs 6,000 crore which will be raised through debt instruments," he said.

The minister said the government would explore options of public-private-partnership (PPP) routes to develop other non-operational airport activities including retail, shopping and malls.

"The income generated through this option will be used to repay or upgrade the facilities of the airports," he said.

About the cluster concept, Patel said the idea was to make development activities attractive in such a way that an investor can strike a balance between profit- and loss-making airports in the country.

"We are finalising options of bidding norms for these clusters and related development. It could be individual special purpose vehicle or a joint venture. We will finalise the mode in a few weeks," he said.

He also said his ministry was closely working with the ministry of agriculture to prepare a plan to lift the perishable and other agriculture produce immediately b aircraft directly from the market.

"The aim is to put a comprehensive cargo handling system in place. We are also developing Nagpur as the multi modal logistic hub which will coordinate the cargo handling in an efficient manner," he said.