The Union cabinet yesterday approved the airport infrastructure policy suggested by the civil aviation ministry, which envisages automatic approval for foreign equity investment up to 74 per cent in such ventures, and permission for up to 100 per cent foreign equity investment on merit.
The cabinet also cleared the price policy for the 1997-98 rabi crop, as recommended by the Committee on Agricultural Cost and Prices (CACP). The minimum support price for rabi wheat has been raised by Rs 40 per quintal and barley by Rs 45 per quintal. The bilateral investment promotion and protection agreement with Sweden has also also cleared.
Under the new airport infrastructure policy, airports will be classified into five categories subcontinental hubs, international hubs, national hubs, regional hubs and other operational airports. The international airports at Delhi and Mumbai will be developed as subcontinental hubs with world-class facilities.
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Upgradation of existing airport infrastructure has also been proposed at an estimated cost of around Rs 10,000 crore, which will be raised through government, private and foreign participation.
The new policy framework also permits the setting up of cargo handling infrastructure, such as satellite freight cities, and will encourage the setting up of electronic data interchange systems for speedy cargo handling.
The move is expected to give a fillip to the proposed satellite freight city on the outskirts of Delhi.
The new policy provides full flexibility in pattern of ownership and management of airports whereby they could be owned, managed and developed by the Centre, PSUs, state governments, urban local bodies, private companies, individuals and also joint ventures by any of the above, a government spokesperson told a press briefing after the cabinet meeting.
The policy also permits foreign airport authorities to pick up a stake in airport projects.
An airport restructuring committee within the civil aviation ministry will identify existing airports for which private sector involvement is required for development and upgradation. It will also identify greenfield projects available for foreign investment.
A permanent commission, including representatives of the ministries of defence and environment, will examine proposals for greenfield airports and report on whether there is a need for an airport at the suggested site, whether the site is technically and economically feasible and whether it should be executed by the public, private or joint sector.
It has also been decided that no greenfield airport will be allowed within an aerial distance of 150 km of an existing airport.