Terming the policy followed by mini-ratna Airports Authority of India AAI for the modernisation of around 35 non-metro airports as confused,the Planning Commission is now reviewing the policy framework related to airport development. AAIs policy for development of 24 select airports has come under much fire,with few takers for the public private partnership model after the government decided to bid out only the city-side development of these airports.
While air-side development of airports has already taken place at most of the cities,policies related to city-side development need to be reassessed by the AAI,said a senior Planning Commission official. A string of meetings were held by the Plan panel recently,with representatives from the ministry of civil aviation,AAI and other stakeholders,over various issues related to airport infrastructure. It included deliberations on the public private partnership model in greenfield airports.
Last year,the AAI had invited expression of interest for development work at Amritsar and Udaipur airports,which received around 25 proposals. After six companies were short listed,the bidding process ran into controversies and was stalled as no request for proposals were sought further by the Authority. The terms and conditions stipulated by the current concessionaire agreement are not acceptable to bidders. The AAI wants to give out the commercial operations outside the terminal to a private bidder,whereas bidders want not only commercial operations but also the terminal-side development as they are looking at management of an airport rather than developing real estate alone, said PriceWaterhouse Coopers executive director Amrit Pandurangi. AAI,meanwhile,is undertaking minor city-side works at some airports.