, he talks about his determination to make the Mumbai International Airport an international benchmark. Here are some excerpts: How have the two years of modernising and upgrading the Mumbai International Airport (MIAL) been?
It has been a fantastic exposure for me. When we took the challenge, we were just three people. Today, we are a team with project expertise. We have graduated from a stage where we were grappling with unclear details to an execution mode with a clear road map.
And how will you move to the next stage?
Now, execution issues need to be resolved. In the next few years, we have to execute to perfection. Everything is on paper "" we have to make it something that Mumbai will be proud of.
Ground reality for a passenger is far from being perfect. What about the timeline for completion of the project?
Till now, we have met every requirement. We have met the first major timeline of March-end this year, wherein we had to complete a majority of the mandatory Operation, Management and Development Agreement capital projects. Then, there is a set of projects that we have to complete by March 2010. We will meet that deadline also.
Will not a delay in the slum removal and rehabilitation required for airport expansion force you to extend the timeline further?
Under the contract, there is absolutely no requirement to remove the slums. We want to do it because we believe it is required to make this airport one of the best in the world. We have voluntarily taken up the entire cost burden to meet land requirements.
What about land acquisition and encroachment issues? Most of the agencies to which land is leased are at loggerheads with MIAL.
That is our biggest challenge. We have 1,850 acres of land, managing 26 million passengers annually. Kuala Lumpur has the same number of passengers but with 30,000 acres of land.
So how are you dealing with this severe land constraint?
We can write a book on every building we need to move and how we are going to go about it. For example, we have to get a parallel taxiway for one of the runways. A majority of the land required for that is with NACIL. We cannot wait for the agency to move so we are building the taxiway on the other side.
Why not go ahead with basic infrastructure refurbishments first, instead of dealing with the irritants at the onset?
We need to focus on things simultaneously, not sequentially. In the initial years, we have the support of the government and the people. If we were to do exactly what we are required to do for, say, Terminal 1A, we would need to put in as little as Rs 5-10 crore. But we want to do much more and are spending close to Rs 100 crore on refurbishing.
Airport upgrade in India has been a reaction to the airline boom. Does the current slowdown in aviation bother you?
Yes and no. It bothers me as the biggest losers are the airlines. But as an infrastructure company, we have to de-link from the current environment. India is still way behind the curve and there is a lot of catching up to do.
Is it the right time to talk about hiking aeronautical charges when airlines are seeking relief from all corners?
The structure of this business is different from other businesses. The government identifies the project and draws terms for the bidders, and these are sacrosanct in any infrastructure project. If the market situation changes for the better, we will not be asking for more. Likewise, if it becomes worse, we cannot ask for less. Yes, for the airlines it is a difficult situation but we have a business to run. We have to repay Rs 6,500 crore to lenders.
At the beginning of the project you had said that 54 per cent of the revenues would come from the non-aeronautical category. Are you sticking to these estimates?
Right now, 40 per cent of our revenues come from the non-aeronautical side, 20 per cent from cargo and another 20 per cent from aeronautical revenue. In the business, when we invest money, aeronautical charges go to repay loans. Once these are repaid, charges will actually come down.
How keen are you to win the bid for the Navi Mumbai airport?
We are waiting and watching. When the government calls for bids, we will be the bidders and, hopefully, the winners. We are very keen on the project as it is of strategic importance.
Does the possibility of losing the bid bother you?
If you are asking whether we will win or lose, we will win. And even if we don't, I will not lose sleep over it.
Has airport privatisation failed in India as a model, as has been mooted by the Planning Commission?
Obviously, it has succeeded. At the end of the day, these things are a point of view. But as a passenger, I do not give a damn. I expect no less for my passengers to ask me this. We have a gap to fill and we will fill it soon.
How does bidding for international airports fit into your expansion plans? Are there any projects you are specifically looking at?
We will be looking at international projects. Apart from Navi Mumbai, there are no other big projects in India yet. We want to look at other parts of the world. East Europe, South America and West Asia are some of the emerging markets.
Does the fickleness of infrastructure policies bother you?
I do not blame the politicians. With a 60-year history of bureaucracy, we have been creating regulations that are not forward looking.
Will an independent airport regulatory authority help?
The industry desperately needs a regulator because it brings in independence in decision-making. We do not mind if the regulator disagrees with us if he is an independent person. Today, our regulator is Airports Authority of India. On one hand, we are paying them as they are our shareholders. On the other, they are also our regulators.
What is the way forward for you?
My focus is to get all major issues related with the execution of the project out of the way. We have resolved 80 per cent of these. There are still a few left. Hopefully, that will be done by year-end. My interest is to have an execution team that is flawless. Then I will move on to something else.
