House panel objects to deal with developers

The Standing Committee on Transport, Tourism and Culture, headed by CPI(M) leader Sitaram Yechury, has expressed its “displeasure” at the imminent closure of existing Hyderabad and Bangalore airports, with new greenfield airports being developed by private players set to open this month.

In its report, tabled in both Houses of Parliament on Wednesday, the committee has “unanimously and unequivocally” recommended that the existing airports at both locations not be closed and that the idea of a User Development Fee to be imposed on passengers at the two new airports was “illogical and irrational”. Noting that the idea of closing government-owned airports for commissioning of private airports mainly looking at profits is against government policy, the parliamentary committee has said the move is in “complete contravention of the level playing field concept”.

Meanwhile, the GMR group’s airport chairman has said that the Government had given them a commitment on closure of the existing airport at Hyderabad once the new one they are building at Shamshabad was operational. “Even when bids were called and the bidders wanted more clarity on the issue, the Government clarified that it would be closed. We have gone through the whole process and achieved financial closure keeping in mind this condition… Having two airports operational just does not make good economic sense”, Kiran Kumar Gandhi told reporters in Hyderabad.