Cabinet nod for pvt participation in airports

It will also facilitate financial packages proposed for greenfield airports in last year’s Budget. The new airports, built with majority equity participation from private firms, can provide facilities like shopping malls, hotels, cinema halls and other passenger amenities.

The new bill, to be introduced during the current session, will replace the AAI (Amendment) Bill of 2000 pending in the Lok sabha.

The previous bill sought private participation in existing airports through long term lease but was referred to the Standing Committee following concern over security. Last year, the committee submitted a comprehensive policy suggesting opening up airports for private firms provided government kept control over security and air traffic.

The proposed amendment is also likely to allow formation of two corporate bodies for modernisation of Delhi and Mumbai airports to develop the two as principal hubs with global standards.

The Cabinet also approved amendment to the obsolete Companies act of 1956 to reform and further liberalise the company sector.

However, the Cabinet deferred a decision on integrated LNG policy that provided for tax breaks for imported fuel. No reasons were given for the deferment, sources said.

A sub-committee of the Cabinet also approved raising Bharat Petroleum Corporation Limited’s equity in the 6-million tonne Bina refinery from 26 per cent to 50 per cent. The remainder equity is to be garnered from financial institutions and the public.

BPCL’s equity contribution would be around Rs 1,440 crore, since the project is estimated to cost Rs 7,500 crore. So far, only Rs 150 crore have been spent on the project.