The model for the modernisation of the four metro airports has not yet been finalized, according to Union civil aviation minister, Mr Praful Patel.

The model will be ready only after studying the proposals submitted by the six bidders for the modernisation programme of the Delhi and Mumbai airports. The bids would be opened by December 2005, it is learnt.

If the revenue-sharing model failed to generate more revenue than what Airports Authority of India would have got had it to do the modernisation by itself, the Union government would drop the public-private partnership plan.

The final decision on the matter will be taken by the Committee on Infrastructure, headed by the Prime Minister. Subsequent to the decision, the funding programme for the Kolkata and Chennai airports will be finalised.

The Delhi and Mumbai airports generate about Rs. 500 crore worth of annual revenue, which is around 70 per cent of AAI's total earnings. At present, only 11-12 airports are generating profits for AAI.

Even if AAI modernised the four metro airports on its own, there would still be public-private partnership for non-aeronautical activities of airports.

Other the four major metro airports, the remaining airports would be modernised by AAI itself. The modernisation of the Kolkata and Chennai airports, would cost approximately Rs.5,000 crore each. A design for the modernisation of the international terminal of the Kolkata has been prepared by Airports de Paris International.

For the Chennai airport, another international agency will be appointed. For the Dibrugarh airport in Assam, the design is ready and work will start soon.

In the next 10 years, the total investment in the aviation sector will be more than $50 billion, the minister stated.

Also See:

Mumbai-Delhi airport modernisation: Two bidders put conditions (23-Sep-05)

To view the details of project click here.

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