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Ashwini Phadnis

NEW DELHI, Feb 17.

IF you were overawed by the beauty of Changi airport in Singapore, then just wait. The airports of Delhi and Mumbai are in for a major face-lift.

Come February 28, the Finance Minister, Mr Jaswant Singh, is likely to outline the broad guidelines for restructuring of the airports in these two metros.

In his maiden Budget speech, the Finance Minister is likely to focus mainly at restructuring of airports in Delhi and Mumbai and lay out the broad contours of the process to be followed.

It is also likely that issues concerning allowing foreign direct investment inflows to such projects are also laid down. The Budget is likely to reflect the present thinking in the Government that ultimately the airports should be entrusted to corporate entities.

The road map laid down for the Delhi and Mumbai airports could be replicated either simultaneously or at a later date at the airports in Chennai and Kolkata also.

However, whether Mr Singh is to look at creation of a special purpose vehicle (SPV) or consider some other option for creation of world-class airports at the four metros is still a closely guarded secret.

Sources said that there was tremendous demand for the profit-making Chennai airport and the invitation to participate in its restructuring is likely to see substantial participation from investors.

And although the restructuring of Kolkata airport is likely to generate a lukewarm interest among the investors, the Government plans to ensure that it too, is turned into a world-class entity.

The urgency in the Government to create world-class airports can probably be gauged from the fact that a move is already under way to appoint internationally renowned consultants to such airports. This was also a part of the mandate given to the consultants appointed by the Ministry of Civil Aviation late last year.

The restructuring of the metro airports has been hanging fire for the past several years. In January this year, in an effort to expedite the process, the Cabinet decided that Mr Singh would sit with his counterpart in the Ministry of Civil Aviation, Mr Syed Shahnawaz Hussain, and report back within a month.

While that deadline has long passed and there has been no official word on the issue, the new financial year could bring a ray of hope to the restructuring of airports in the country. And soon after, a world-class airport in India could become a reality.

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