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| Govt eyes public offer for Nacil |
| BS Reporter / New Delhi Jun 02, 2009, 00:41 IST |
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No more airports to be privatised, but pvt sector can invest in greenfield project
In order to infuse funds to meet its financial requirements, the government will soon consider an initial public offer (IPO) for cash-strapped National Aviation Company of India (Nacil), said Praful Patel, the new civil aviation minister who assumed office for the second consecutive term today.
“The IPO for Air India will be considered. But the airline will not lose its public sector character and it will not be privatised,” Patel said.
Declining to specify a time-frame for the project, the minister explained, “This is one area of intent... the IPO will bring in much-needed liquidity infusion and also accountability,” he said.
“We will try to get Air India the money from the government that has been promised, but I can’t speak on behalf of the finance ministry and neither can I comment on the forthcoming Budget,” he said.
Patel made it clear that there would be no further privatisation of airports in the country, although the private sector could invest in this infrastructure area through the greenfield route. Patel had a word of advice for the private carriers. He urged the private airlines not to undertake any “reckless expansion” and avoid “financial misadventure” in these testing times.
Outlining the agenda for his ministry, the civil aviation minister said development of infrastructure, modernisation and upgrade of airports, passenger safety and regulatory issues would be taken up on priority basis.
Dwelling on the financial crises facing the airline industry due to reduction in air traffic, Patel said his ministry would discuss the issue of rationalising sales tax on Aviation Turbine Fuel (ATF) with state governments to relieve the sector.
“We are not going to go for any more disinvestment or take the private-public partnership route for any more airports.” Noting that the Airports Authority of India (AAI) was already developing two major airports of Kolkata and Chennai, he said, “We want to let AAI have a good level-playing field. They are also developing major airports at Amritsar and Ahmedabad, besides the non-metro airports.”
With a policy framework for the industry now in place, Patel specified his ministry would aim at “strengthening and enhancing the scope of Aviation Economic Regulatory Authority (AERA)”. On the question of whether foreign carriers would be allowed to invest in the airline industry, Patel said such decisions cannot be taken without the approval of the larger platform.
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