Continuing its privatisation drive, the Union Cabinet on Tuesday night decided to accord 'independent status' to greenfield airports in the country with majority private participation, barring air traffic control and security.
"A comprehensive bill to amend the Airports Authority of India Act, 1994, to facilitate the financial packages proposed for greenfield airports in last year's budget would be introduced in Parliament," an official spokesman said after the Cabinet meeting chaired by Prime Minister Atal Bihari Vajpayee.
The government has already granted in-principle approval for construction of greenfield airports through joint ventures under private sector participation at Hyderabad, Bangalore and Goa.
At present, the first two are under construction with majority private participation, with proposed facilities like shopping malls, hotels, cinema halls and other passenger amenities.
A similar airport at Kochi is already functional.
The spokesman said the Cabinet decided to withdraw the AAI (Amendment) Bill 2000 pending in the Lok Sabha and bring forth a comprehensive legislation.
The plan is also to empower AAI to effectively deal with encroachments on airport premises, he said adding the ATC and security of airports would remain under government control.
The amendment would also facilitate implementation of a financial package proposed for greenfield airports.
The prime minister had in October 1998 declared that world-class international airports would be set up in the country.
In keeping with the announcement, the Cabinet had on January 12, 2000, approved the introduction of a legislation to amend the AAI Act to enable the organisation to lease out airport properties to private investors.
The Bill was introduced in Parliament on November 30, 2000, but was referred to the Standing Committee, which tabled its report on November 21, 2002 recommending the passage of a comprehensive legislation.
The proposed amendment is also expected to bring within its ambit formation of two companies for upgrading Delhi and Mumbai airports to global standards and developing them as principal hubs for international travel to India.
The companies are likely to be set up with initial equal equity participation from AAI, sources said.
The legislation may include a proposal for restructuring of airports through the joint venture route. The alternative leasing route is also under consideration.
There is also a proposal to create an Airport Development Fund under the AAI.