AAI budget cut would hit airport projects: govt panel

Standing Committee on Transport, Tourism and Culture said the allocation to AAI, which was Rs 280 crore in the 2012-13 budget, has been reduced to Rs 42 crore in 2013-14

A "drastic cut" in the budgetary support to Airports Authority of India would adversely hit ongoing airport modernisation projects, especially those in the Northeast, a parliamentary committee has said.

The committee also came down heavily on the Planning Commission for introducing a new procedure requiring additional approvals for all projects mentioned in the Plan, saying this was acting as an "impediment" and delaying construction of new airports and other crucial infrastructure projects.

The Standing Committee on Transport, Tourism and Culture, in its report tabled in Parliament, said the allocation to AAI, which was Rs 280 crore in the 2012-13 budget, has been reduced to Rs 42 crore in 2013-14.

Of this, Rs 32 crore was meant for construction of an airport in Pakyong (Sikkim) and the remainder for upgrading the Tirupati Airport.

The panel, headed by CPI(M) leader Sitaram Yechury, said, "Such a drastic cut in budgetary support for the airport infrastructure developer of the country will definitely slow down the ongoing projects, especially in the Northeastern region."

On the Planning Commission, it said earlier, when a particular project was mentioned in the five-year plan, it used to be considered as approved.

"But the Planning Commission has started a new process wherein projects taken up for consideration have to get in-principle approval and then start the process every time. These procedural issues are acting as impediments in spending the allocated funds," the panel said.

It expressed hope that necessary funds would be allocated to the AAI "at the RE (revised estimate) stage so that its ongoing as well as future projects are not delayed for want of funds."

The Committee also recommended that Rs 77 crore, allocated for the GAGAN (GPS Aided Geo Augmentation Navigation) project which is to become operational from July, be immediately released.

This satellite-based system would enable routings and overflights not only over the Indian airspace but also over the high seas on the east, south and west of India -- that is from Singapore to the African coast.