Reliance Infrastructure Ltd (R-Infra) says it expects the governments in Andhra Pradesh and Gujarat to invite bids to develop regional airports, which it is interested in taking up.
Reliance already operates five airports in Maharashtra, at Nanded, Yavatmal, Osmanabad, Latur and Baramati on a 99-year lease.
“We are looking at various regional airports in Andhra Pradesh and Gujarat, which will be up for bid soon. We are also looking at other regional airports across the country,” said a senior executive of R-Infra, who did not want to be identified.
In late 2008, the Andhra government had invited bids to develop eight regional airports in Tier-IV cities. As many as 37 companies, including R-Infra, expressed interest, but the economic downturn hit soon after. And, not a single company finally made a bid. The AP government cancelled the entire plan; R-Infra believes they are now thinking of reopening it.
According to estimates, about three per cent of Indians, largely from metropolitan cities, are regular air travellers. The executive said R-Infra sees an opportunity in the remaining 97 per cent and remains committed to the development of regional airports.
“Regional airports can play a part in decongesting metro airports and can be used for refuelling and cargo activities. India’s geography and large population base presents multiple opportunities for airports,” said the executive. Clarifying why the company did not bid for the Kushinagar airport in Uttar Pradesh, the executive said R-Infra was interested in bidding for existing airports, not to erect new ones, at this stage.
“The problems of land acquisition, local opposition and environmental concerns make it a difficult entry point for private operators. Hence, we would like some existing infrastructure assets to be present at the site before we bid,” said the executive.
The Airports Authority of India is also thinking of developing 15 of 40 non-operational airports in smaller cities across the country, on a public-private partnership basis. The airports under consideration are in Rajasthan, Orissa, Bihar, Uttar Pradesh, Jharkhand and the northeastern states.