The Union Cabinet is likely to take up the issue of airport privatisation before the Budget Session of Parliament resumes early next month, official sources said on Wednesday.
A draft Cabinet note to amend the Airports Authority of India Act has already been circulated and the matter could come up for consideration before the Cabinet in the next two weeks, they said.
The government has already paved the way for expeditious modernisation of Delhi and Mumbai airports in the Budget by deciding to allow setting up of separate companies for the two metro airports with "initial equal equity participation" from the AAI. This would entail amending the AAI Act.
The two airports would be developed as the "principal hubs" for international travel to India.
The two companies would be formed with initial equal equity participation from the AAI, which could also take joint venture partners, the sources said, adding management of the airports would be leased out on completion of the projects.
The bill to amend the Act was earlier revised to include a proposal for creation of an Airport Development Fund under
the AAI.
In the budget, the government has estimated a cost of Rs 11,000 crore (Rs 110 billion) for renovation and modernisation of these two airports, along with two seaports.
Replying to a debate on the Budget in Parliament, Finance Minister Jaswant Singh had also said that detailed project
reports for modernisation of Delhi and Mumbai airports would be completed shortly.
He had said "this is only a beginning and more airports at Kolkata and Chennai and other parts of the country will be
taken up".