New Air Terminal For Delhi Mooted

The Airport Authority of India (AAI) is planning to seek government clearance to build a new international and domestic terminal at Delhi airport in August-September. The cost of the project is expected to be around Rs 1,500 crore, 40 per cent of which is expected to be raised by AAI's internal resources.

The proposal includes building a third runway, the cost of which is yet to be estimated. The new buildings are proposed to be built near the present international airport.

The current domestic terminal, used by air traffic operators (ATOs) after the new Indian Airlines terminal became operational, was built in 1944 and is congested. The international airport is also not geared to meet growing traffic and hence the need for the new terminals. Sources said speedy clearance by the government was crucial and pointed out that delays would lead to further cost escalation. AAI has around 5,000 acres of land in the area.

AAI sources said the proposal would be put up to the civil aviation ministry soon and then approval from the Planning Commission and Public Investment Board would be sought.

Terminal IA, which is being used by IA now, was built at a cost of Rs 24 crore. Sources said the project would provide a good internal rate of return over the long run. AAI sources said plans to renovate and rebuild the ATO terminal (1B) are also on. Sources said the AAI management was in agreement on this but board approval is yet to be sought.

The civil aviation ministry has, however, been considering privatising various airports, including Delhi. AAI sources said this would prove difficult since the first step itself, valuation of land, is a contentious issue. Further, 52 per cent of the total traffic of the country is through the Delhi and Mumbai airports and if this is taken away from AAI, it will not be possible for it to raise funds to run smaller and less viable airports.

According to government estimates, an annual growth of around 10 per cent will be seen in traffic and by 2005 there will be 45 million domestic passengers and 25 million international passengers. Cargo handled is expected to go up to 0.5 million tonnes for domestic and one million tonnes for international. It is argued that by 2005 the Delhi and Mumbai airports will be reaching saturation.