Government has no plans to privatise airports, says civil aviation minister

The Employees union of the Airport Authority of India (AAI) has threatened to go on strike against the proposed privatisation of airports but the government has no such proposal, Rajya Sabha was informed today. However, Minister of State for Civil Aviation Mahesh Sharma told the Rajya Sabha in a written reply that the government has initiated a process to develop four airports through a public private partnership mode. [caption id=“attachment_2133523” align=“alignleft” width=“380”] Civil aviation minister Mahesh Sharma[/caption] In response to a query on whether the AAI employees union had threatened to renew its agitation, including an all out strike if the privatisation plan was not called off, Sharma said, “There is no proposal for privatisation of Airports Authority of India (AAI) airports in the country”. The government is currently in the process of undertaking the operation, management and development of Chennai, Kolkata, Ahmedabad and Jaipur airports through PPP mode. The move is based on recommendations made by the task force on a financing plan for airports during the 12th Five-Year Plan period. The panel was set up by the erstwhile Planning Commission. As many as 87 airports in different states do not make any profit, Sharma said in a separate written reply. These airports are spread across Andhra Pradesh, Gujarat Uttar Pradesh, Arunachal Pradesh, Assam, Bihar, Himachal Pradesh, Jharkhand, Karnataka, Madhya Pradesh, West Bengal, Tamil Nadu and Rajasthan, among other states. AAI has reportedly initiated various steps including the development of cargo activities and the enhancement of non-aeronautical revenue through the revision of rates and awarding of contracts through master concessions, to make loss-making airports viable and profitable. Besides, AAI has completed works at 49 non-metro airports out of the 63 identified for development. PTI