Regulator for Indian airports coming

 Chennai airport to be developed in the JV route

BY A CORRESPONDENT
February 28, 2006

The Union government is planning to set up an Airport Economic Regulator for setting performance standards, tariffs etc. The Economic Survey presented in the Parliament today said that this is because of the monopoly nature of airports and their economic importance.

According to the Economic Survey presented in the Parliament today by finance minister P Chidambaram, modernization of Delhi and Mumbai airports will be completed in 20 years, in four stages of five years each. However, the first stage is expected to be completed in time for the Commonwealth Games in New Delhi in 2000.

Two joint venture companies will develop the Delhi and Mumbai airports. Private parties and the Airports Authority of India will have stakes in the JVs. The airports will be handed over to the JV companies in the second half of 2005-06, the Economic Survey added.

Preliminary estimates have put the cost of renovating Delhi and Mumbai airports at Rs 7,961 crore and Rs 6,131 crore respectively. This does not include the cost of rehabilitation of slums and encroachments and relocation of assets.

According to the Economic Survey, an in-principle decision has also been taken to modernize the Chennai airport through the JV route.