Airport bids to be finalised by August

AAI to borrow from markets to fund airport expansion; programmes expected to cost Rs 40,000 cr

The government today said the private partners of Airports Authority of India (AAI) for the restructuring of Delhi and Mumbai airports were likely to be finalised by July or August this year.

"Nine private partners have already been given 12 weeks' time to submit their technical and financial bids and based on their bids we expect to take a final decision by July or August this year," Civil Aviation Secretary Ajay Prasad said on the sidelines of a civil aviation conclave organised by the Confederation of Indian Industry (CII) here.

The government has already floated the request for proposals for modernising the two airports.

Prasad also said the AAI would borrow from the markets to fund airport expansion and upgradation programmes. "We have already started the process to raise funds through debt," he said, without disclosing the amount to be raised.

Ruling out tapping overseas market to raise the funds, he said the government would approach the domestic market for the purpose.

He said the exact time and the amount to be raised would be determined by the report of the study conducted on 25-30 airports across the country to find the traffic projections, aeronautical expansions and city-side development of each airport.

"By April 30, we expect reports on 10 airports to be available," Prasad said adding that the government expects to start work on four to five airports by the year end. The total aviation infrastructure expansion is expected to cost about Rs 40, 000 crore.

He also said the Indian Airlines' plan to buy 43 aircraft is likely to get the nod of the Union Cabinet soon. Observing that the public sector carrier had completed price negotiations on the matter, he said the delivery of the planes from the Airbus Industrie is likely to start by the end of 2006.

On Air India's plans to acquire 50 aircraft, Prasad said the board of Air India would meet next week to consider the purchase. Air India board has recently approved the purchase of another 18 Boeing 737s for its low cost subsidiary, Air India Express, and the proposal was awaiting government approval.

He said while the delivery of aircraft may start by the end of 2006, both Indian Airlines and Air India have started leasing aircraft to meet short-term requirements.

With the opening up of the civil aviation sector, the two carriers faced competition both from domestic private carriers and international airlines, Prasad said, adding that they needed to upgrade their facilities to face the challenges.

"We would certainly do everything possible within our means to make the two airliners competitive and take on rivals from the private sector," Prasad said.

Flight plan

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• Nine private partners have already been given 12 weeks time to submit their technical and financial bids
  
  
• No plans to raise funds from overseas markets
  
  
• The total aviation infrastructure expansion is expected to cost to the tune of Rs 40, 000 crore
  
  
• By April 30, reports on traffic projections, aeronautical expansions and city-side development of 10 airports will be available
  
  
• The total aviation infrastructure expansion is expected to cost to the tune of Rs 40, 000 crore