 "Six airports to get Rs 4k-cr private investment")
According to the qualification documents issued recently by the ministry of civil aviation, private players awarded the contracts for operations, management and development in this second phase of airport privatisation programme would have to make estimated investments in the range of Rs 500-1,200 crore for development and upgrade works at each of these airports. The ministry has shared initial cost estimates and the scope of development works required to be carried out by the concessionaire at each facility. Actual costs, however, can be shared by qualified bidders at the RFP (request for proposal) stage.
The private concessionaire will have to invest Rs 1,200 crore and Rs 500 crore for upgrading the Chennai and the Lucknow airports, respectively. The investments at Chennai include resources required for constructing a new domestic terminal, a parallel taxi track, re-carpeting the main runway, modification of old international terminal building, connectivity of metro rail, construction of common user cargo terminal and multi-level car park. The investment will have to be made in three-four years.
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The concessionaire would have to re-carpet the runway, expand the terminal building, relocate the car park, construct cargo terminal, three additional hangars, boundary wall, perimeter road, new fire station, CISF barracks and administrative block at Lucknow. The bidders shortlisted for the privatisation of the Lucknow airport will be announced on
October 28. As many as 11 companies, including Infrastructure Leasing and Finance Services, Essar Infrastructure, Tata Projects, Tata Realty and Infrastructure, GMR Group and Anil Ambani’s Reliance Group evinced interest in bidding for the privatisation programme of the Chennai and Lucknow airports last week. At Kolkata airport, the private concessionaire would have to make investments of Rs 700 crore among others for extension of air-side corridor to cater to additional aerobridges and modification of old domestic terminal building, strengthening the main runway, metro connectivity, including covered link till the terminal buildings, construction of domestic cargo terminal. The private parties would have to invest Rs 700 crore at Ahmedabad, Rs 550 crore at Jaipur and Rs 600 crore at Guwahati for development and upgrade works, including expansion, upgrade or construction of new passenger terminals.
The government is working with a tight schedule awarding these projects before the end of the current financial year, based on a deadline set by the Prime Minister's Office. To address concerns that privatisation of the six old airports might result in higher charges for passengers, the tariff to be levied after privatisation would be determined before awarding the projects. A price increase would be linked to the wholesale price index to ensure certainty regarding charges even after the private concessionaire takes over operations.