Govt aims to develop 5 airports, award contracts

New Delhi: The civil aviation ministry will start the development of five no-frills airports and award management contracts of four airports to private operators in the current financial year. The targets were set in a meeting between secretaries of ministries and Prime Minister (PM) Narendra Modi on Saturday.

Planning Commission Secretary Sindhushree Khullar coordinated the meeting attended by secretaries from the railways, road transport and highways, civil aviation, power, coal, renewable energy, ports and shipping, telecommunications, petroleum and natural gas ministries and the PM.

A ministry official said, "The outlay for the civil aviation sector has been increased 66 per cent. It was decided to start work on five of 50 low-cost airports. The locations are yet to be finalised. We have decided to award management contracts in at least four of six airports to private operators, processes for which were started last year."

The year’s outlay for the civil aviation ministry is Rs 934 crore.

The United Progressive Alliance (UPA) government had last year started the process to award management contracts at airports in Chennai, Kolkata, Lucknow, Guwahati, Jaipur and Ahmedabad to private operators. The process had to be stalled earlier this year due to Assembly elections. "Depending on the response we receive from private operators and the readiness of the airports, we would award the contracts at at least four of the six airports," added the official.

The ministry has set the target of awarding contracts keeping in mind possible obstacles. There is a court case pending in relation to an awarding of a contract at the Chennai airport to a private operator.

The progress of the projects, with those identified in transport, communications and energy sectors, will be reviewed by the PM at a meeting next month. The Cabinet secretary would work towards a mechanism to ease possible hurdles.

Other projects under review by the PM include high-speed rail freight corridors, gas pipeline grid and clean energy. The government discussed a 10-point agenda to determine targets for the railways for the current financial year. Also, the Budget allocation for the renewable energy ministry was proposed to be increased two-thirds to Rs 2,500 crore.

An official said, "There is a lot of focus from the prime minister's office on efficiency in power transmission, full metering, increased deployment of clean energy, an improved gas supply network and an overall technical improvement of the sector."

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.