Strengthen AAI financially, administratively: parliamentary panel tells govt

New Delhi: A parliamentary panel has asked the government to strengthen the state-run Airports Authority
of India (AAI) financially and administratively and protect the interests of its employees.

Noting that AAI has to develop, operate and maintain “non-lucrative” airports across the country, the Standing Committee on Transport, Tourism and Culture said the AAI “should be empowered more financially and administratively”.[caption id=“attachment_112923” align=“alignleft” width=“380”]  IGI Airport in New Delhi. AFP[/caption]

In a report tabled in Parliament today, the Committee headed Trinamool Congress MP KD Singh noted the civil aviation ministry’s reply that it had taken up several airports for modernisation through public-private partnership (PPP) mode “as per the recommendations of the Task Force (on infrastructure) and directions of PMO (Prime Minister’s Office)”.

The panel, earlier headed by CPI(M) leader Sitaram Yechury, had recommended that construction, operation and maintenance of airports should remain with AAI, which should be “empowered to take decisions to generate resources rather than handing over the core activities of airports, newly constructed with public money, to private players”.

More from Economy

Inflation likely to be a big focus area for budget 2024, say sources Explained: Will the Bank of Japan break tradition and raise interest rates?

It had then also expressed concern over the fate of 1,050 and 1,200 employees respectively of Chennai and Kolkata airports after they are put up under PPP.

The Committee reiterated its earlier recommendation of “protecting the interest of AAI employees in consultation with them”.

The panel had earlier said that revenue could not be fully generated due lack of use of commercial space at privatised airports like those in Delhi, Mumbai, Bangalore and Hyderabad.

“Entire blame for this has been laid on the AAI and the ministry has nothing to show about the efforts made by itself to help AAI. It appears that AAI is being made a scapegoat in this regard. The Committee feels that it was due to negligence
more on part of the Ministry than the AAI,” it had said.

With the ministry stating that AAI had “struck a balance in fixing the commercial floor area in its airports”, the panel sought details about the percentage use of floor area for commercial activities at these four airports.

PTI