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April 4, 2000

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Doubts expressed over financial viability of Goa airport

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Sandesh Prabhudesai in Panaji

The Civil Aviation Ministry is confident about the success of the Goa international airport, even as doubts are being expressed over the financial viability of the project.

Sharad Yadav, the Civil Aviation Minister, declared last week that the Goa airport would be a joint venture between the state government, the Airport Authority of India and a private investor.

The exact pattern of the equity holding at the proposed Goa airport is, however, yet to be finalised.

The ministry expects that the work would be completed in five years at an estimated cost of around Rs 12 billion.

Ravindra Gupta, civil aviation secretary, when asked if this huge project would be viable for the tiny tourist state, said, "The exercise has to be taken up by the investor. The financial experts will prepare a project report in this regard."

The Bharatiya Janata Party, or BJP, which is a part of the coalition government in Goa, has expressed scepticism over the viability of the airport. "Let some investor come forward. Only then will I comment on the issue," said Manohar Parrikar, the local BJP leader.

Aviation experts too shared Parrikar's view. They said the likelihood of a private investor coming forward is slim.

Unless immediate returns are visible nobody would invest to build an airport on a build, own, operate, and transfer, or BOOT, basis, they added.

Currently, Goa has an average of 15 flights per day. These include nine domestic flights, three flights a week to Lakhshadweep, four Air-India flights a week to Kuwait, and two flights a week via Bombay.

It also has about 8 daily charter flights from Western nations during the peak tourist season.

Meanwhile, the Defence Ministry -- from whose naval airport at Dabolim the civilian traffic operates -- has allowed night landings and usage of the airport for 18 hours. The actual operations are, however, yet to begin.

"This will help in shifting some landings at night and ease matters during the tourist season rush," said Arun Talwar, the airport director.

However, this may not be enough to make the international airport a profit-making venture, experts said.

This is not the only bone of contention. Even the site chosen for the proposed airport has become a controversial matter.

Francisco Sardinha, Goa's Chief Minister, has expressed his desire to shift the airport, despite the central government approving Mopa in north Goa as the site.

Meanwhile, Sharad Yadav declined to talk about the discussion he had with Sardinha during their meeting last week.

"Mopa is the site for the international airport at the moment," he said. He did not say if the location would be reconsidered.

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