Airport revamp through joint ventures

Two joint venture companies for modernising Delhi and Mumbai airports, comprising Airports Authority of India and selected private parties, would be handed over the airports by the second half of 2005-06 fiscal.

An 'in principle' decision has also been taken to modernise the Chennai airport through the JV route, the Economic Survey for 2005-06, tabled in Parliament, said.

Due to monopoly nature of the airports and their economic importance, efforts are afoot to set up an independent Airport Economic Regulator for tariff setting and monitoring of performance standards, it said.

As per preliminary estimation, the capital investment for modernisation of Delhi and Mumbai airports would be Rs 7,961 crore (Rs 79.61 billion) and Rs 6,131 crore (Rs 61.31 billion) respectively, over a period of 20 years in four stages of five years each.

Economic Survey 2005-06

These estimates, the document said, could not include the cost of likely relocation of some of the assets and removal of encroachments.

On the fleet acquisition by public and private airlines, it said government had approved the acquisition of 43 Airbus planes by Indian, 50 Boeings for Air India, 18 for Air India Express and a total of 51 aircraft for seven private carriers during the past year.