
Airport construction and expansion have become political and regulatory minefields in many parts of the world, above all in those where opponents are free to object through the courts and the ballot box. Even so, the muddle and indecision engulfing India8217;s plans to modernise its shamefully decrepit facilities take some beating.
Rapid decisions are vital because inadequate capacity is choking the growth of air travel and of the economy as a whole; because airport modernisation is a litmus test of India8217;s determination to proceed with much-needed investment in other types of infrastructure, such as electricity and roads; and because the programme is widely viewed as a gauge of the country8217;s readiness to open up to foreign capital and management expertise8230;
Singapore, which did enter the bidding, withdrew in frustration. Others were eliminated by an overly rigid assessment system8230;
Praful Patel, the reformist civil aviation minister, wants a decision by the end of the month. If the government is to retain any credibility, this deadline must be kept. Contracts must be awarded quickly and the winners allowed to get on with the job.
When India unshackles the private sector, things get done: witness the lower prices and much improved choice and service standards since it introduced competition in domestic air transport a few years ago. But delays in airport modernisation are squandering the benefits of airline liberalisation. Delhi has run out of excuses for political and bureaucratic dithering. If ever there was a time to show it is serious about reform, it is now.
Excerpted from an editorial in the 8216;Financial Times8217;, January 24