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Journalism of Courage
The Civil Aviation Ministry has approved in principle “mini-ratna” status for Airports Authority of India (AAI) so as to enable the organisation to execute projects worth up to Rs 500 crore, without taking Government approval.
Getting the “mini-ratna” status would also enable the AAI to enter joint ventures with private companies to modernise aviation infrastructure across the country.
To get the “mini-ratna” status, the AAI would need a clearance from the Department of Public Enterprises (DPE) and would have to appoint four independent directors on its board. Also, the AAI would need to convince the Government that the grants it received from the Centre to operate non-profitable airports in the Northeast should not be held in the way of granting the “mini-ratna” status.
The AAI, a profit-making public sector company, requires prior Government approval before undertaking projects worth more than Rs 150 crore. Once it procures the “mini-ratna” status, it would be able to take up projects worth up to Rs 500 crore, said Civil Aviation Ministry officials.
Meanwhile, the AAI on Thursday paid Rs 112 crore as dividend to the Government. This is its full and final dividend for the financial year 2006-07. Earlier, the AAI had paid an interim dividend of Rs 60 crore to the Government in January 2007. With this, the total dividend paid for the year 2006-07 stands at Rs 172 crore.
This is the highest ever dividend paid by the AAI to the Government. During 2006-07, AAI earned highest ever revenue of Rs 3,726 crore and earned profit after tax of Rs 860 crore.
