The Hindu Business Line : Chennai, Kolkata airport revamp to cost Rs 7,000 cr

Revamp plans
The revamp process at Chennai and Kolkata airports is expected to start soon after the Assembly elections.
The proposal for two airports got `in-principle' nod from the Prime Minister's Infrastructure Committee in August last year.

New Delhi , April 14

Despite a demand from the Left parties and a section of the employees of the Airport Authority of India (AAI), the modernisation of Chennai and Kolkata airports may be out of the reach of the AAI.

Official sources told Business Line that despite having reserves and surplus to the tune of Rs 3,352 crore (provisional) as of April 1 this year, the Authority would not be able to touch the special reserves as that is earmarked for specified expenditure.

"Consequently, AAI may be able to spare about Rs 600 crore from the general reserves and this would be inadequate to undertake the modernisation of Chennai and Kolkata airports, which is estimated to cost Rs 7,000 crore," the sources said.

The modernisation process at Chennai and Kolkata airports is expected to start soon after the Assembly elections in the two States are completed. The Tamil Nadu Government has already given several hundred acres of land free of encumbrances for the airport modernisation process to start. Similarly, the West Bengal Government is also said to be keen to have a world-class airport in Kolkata.

In-principle nod

The proposal for modernising the two airports got an `in-principle' nod from the Prime Minister's Infrastructure Committee in August last year. The Centre's intention to proceed with the modernisation of these airports was again spelt out in the Economic Survey 2005-06 that said an in-principle decision had been taken to modernise Chennai airport through the joint venture route.

Therefore, Government sources indicate that the joint venture pattern for Chennai and Kolkata could be similar to that of Delhi and Mumbai airports where AAI is the minority partner holding 26 per cent stake while the majority equity is with the private parties, which have been selected for the developmental works.

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