Staff submits plan to upgrade airports

Unions feel Airports authority of india should get the job

Employees of the Airports Authority of India (AAI) have put forward an alternative plan for the privatisation of the Delhi and Mumbai airports and want the government to consider it as a bid to participate in the modernisation of the two airports.

The employee unions have proposed that since AAI has expertise in house to build and operate airports, the modernisation and upgrading of both airports should be undertaken by AAI itself, instead of going in for privatisation.

As per the plan put forward by the AAI Employees Joint Forum, modernisation of the two airports would require investments to the tune of Rs 3,900 crore, which would be made over a period of 48 months.

The proposal noted that Rs 3,900 crore could be financed by reserves of Rs 2,300 crore available with the AAI and the remaining could be raised as loans. It also proposed to raise funds from financial institutions.

Besides, the alternate plan also calls for the government to take action and recover Rs 536 crore from various airlines as landing charges.

According to the plan, Delhi airport would require an investment of Rs 2,031 crore, while Mumbai airport would need Rs 1,874 crore for modernisation and upgradation.

As per the investment schedule of the business plan, in the first year "" 2004-05, investments to the tune of Rs 10 crore would be made in the two airports.

In the second year, investment in the two airports would be stepped up to Rs 1000 crore, which would be further enhanced to Rs 1, 400 crore in the third year. In the fourth year, total investment in the two airports for upgradation would be Rs 1,495 crore.

The plan of the employee forum also states that AAI has built airports in various other countries and in India.

"AAI has the expertise and funds. We want our alternate plan to be considered as an expression of interest," said M K Ghoshal, convener of the joint forum of AAI employee unions.

Meanwhile, a delegation of Left parties met Prime Minister Manmohan Singh to stall the privatisation of the two airports.

According to sources, the Left leaders also informed the government of the alternate plan prepared by the AAI employees and wanted it looked at seriously.

Flying on in-house wings

• The AAI feels it has in house expertise to build airports
• As per the plan, modernisation of the two airports will require investments to the tune of Rs 3,900 crore, which will be invested over a period of 48 months
• Rs 3,900 cr will be financed by Rs 2,300 cr reserves available with the AAI, the remaining is proposed to be raised as loans
• The plan also calls for the government to take action and recover Rs 536 crore from various airlines as landing charges
• Delhi airport, the plan says, would require an investment of Rs 2,031 cr, while Mumbai will need Rs 1,874 cr
• As per the investment schedule, in the first year, investments to the tune of Rs 10 crore will be made in the two airports. In the second year, investment will be stepped up to Rs 1000 cr