rediff.com: Govt sets the ball rolling for airport privatisation

The government on Monday set the ball rolling for privatisation of airports at four metro cities by making a presentation before interested parties including those from Switzerland, Singapore and Malaysia.

The probable investors, including international airport operators, bankers, financial investors and developers, were given a detailed presentation on the features and advantages of the airports at Delhi, Mumbai, Kolkata and Chennai by KPMG the global advisers of the Civil Aviation Ministry and Airports Authority of India.

Launching the presentation, civil aviation secretary K Roy Paul stressed on the government's commitment to complete the proposed transaction "within the current financial year" and invited foreign and Indian investors to bring in their talents to make these airports truly world class.

KPMG's presentation focussed on the restructuring of the Indian civil aviation sector, the advantages of the four metros and their airports, besides the salient features of the proposed transaction structure, AAI officials said.

AAI chairman S K Narula briefed the interested parties on the past cargo and passenger traffic in these airports and their projections, besides the "untapped potential" to enhance commercial revenue from these airports which were hubs of economic activity.

The parties were also informed that the term of the concession was proposed to be thirty years and the concession component would be divided into an upfront payment and annual payment linked with the traffic volume.

Similar roadshows for these airports would be held in London on April 19 and few other places.



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