AAI cell to handle PPP process for Chennai, Kolkata airports

With Civil Aviation Ministry fast-tracking privatisation of management of Kolkata and Chennai airports, the Airports Authority of India has set up a cell to execute PPP process to operate and maintain these and other aerodromes.

The Key Infrastructure Development (KID) cell, which was in existence during the privatisation of Delhi and Mumbai airports, would handle the public-private partnership process for Kolkata and Chennai airports, which are currently owned and managed by the AAI, official sources said.

It would also take care of privatising and running air and city sides of "certain (other) identified airports", they said.

KID was the nodal point in the AAI for private players who participated in the bidding process during the modernisation of Delhi and Mumbai airports in 2005.

It was not only the data room providing details on traffic flows, projections and area of land available with the two airports, but also put out Requests for Proposal for their modernisation. It was wound up after the process was over.

The decision to set up the KID again with five senior AAI officials was taken soon after Civil Aviation Minister Ajit Singh said global bids would be invited for professional management of new Chennai and Kolkata airports through PPP.

"These two airports have to be managed professionally by engaging private partners through the PPP or joint venture route. The offers in this regard will be invited through an international bid very soon," Singh had said last month.

Chennai airport was modernised at a cost of Rs 2,100 crore, while the airport in Kolkata was refurbished for Rs 2,350 crore. These airports are currently the highest revenue earners for AAI, after other major metro airports, like those in Delhi and Mumbai, were privatised.

KID would assist the ministry in various aspects to execute the project, including appointing technical, legal and financial consultants, the sources said.