The central government on Wednesday approved a memorandum of understanding (MoU) between India and Singapore to increase cooperation in civil aviation sector.
The approval on the MoU signed between Airports Authority of India (AAI) and Singapore Cooperation Enterprise was taken by the cabinet under the chairmanship of Prime Minister Narendra Modi.
"The union cabinet has given its ex-post facto approval for a MoU, which was signed in November 2015 between the AAI and Singapore Cooperation Enterprise," said a cabinet statement.
"The objective of this MoU is to establish mutual cooperation in the field of civil aviation, which will cover, to begin with, the airports of Jaipur and Ahmedabad. This cooperation will be extended to other airports with mutual consent."
The statement elaborated that the MoU will enhance collaboration in areas such as traffic development, cargo handling and maintenance, repair and overhaul (MRO) operations.
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"A need was felt that in order to ensure high standards of service at Ahmedabad and Jaipur airports, AAI may enter into operation and maintenance (O&M) contracts either with or without the responsibility of maximisation of non-aeronautical revenue in the terminal building," the statement said.
"The city side and airside will continue to be managed directly by AAI."
The statement informed that globally, limited O&M contract models are prevalent for the entire airport operations and not just contained to manage terminal buildings alone.
"AAI has no previous experience in awarding O&M contract model of terminal buildings to other entities," the statement explained.
"In order to implement the decision, it was necessary to ensure that a suitable entity be engaged for undertaking the O&M contract at Ahmedabad and Jaipur airports."
