Pvt parties to be allowed to pick up 100 pc stake in Chennai,

After Delhi, Mumbai, Hyderabad and Bangalore, government today launched the process of allowing private parties to pick up 100 per cent equity stake in operation and management of Chennai and Lucknow airports through public-private partnership (PPP) mode.
"The Request for Qualification (RFQ) for these two airports are invited up to mid October and financial bids are likely to be received by mid December," a Civil Aviation Ministry spokesperson said here.
Four more airports at Kolkata, Guwahati, Jaipur and Ahmedabad would be taken up shortly for operation, management and development on PPP basis, the spokesperson said.
All these six airports have already been modernised by the state-run Airports Authority of India at a high cost to the exchequer. The modernisation of Kolkata and Chennai airports alone has cost the AAI Rs 2,325 crore and Rs 2,015 crore respectively.

The scope of the project includes the entire airport, including the airside and city side facilities on long-term concession.
While details are yet to be announced, official sources said these six airports would be given to the private concessionaires on lease for a period of 30 years.

The move has come under serious criticism from several quarters, including airlines and their global representative body, International Air Transport Association, primarily on the grounds that it would lead to massive hike in airport costs and charges.
The RFQ have been invited from single entity or a consortium of entities who would form a special purpose vehicle (SPV) for running these airports. The AAI would not be part of the SPV and would not infuse any equity in it.

In order to secure representation of the AAI on the Board of the SPV, the Concession Agreement would include a provision for issue of a 'golden share' which would enable the public sector airports body to have a say in major matters concerning these airports.
The selected concessionaire would levy tariffs for aeronautical services including the User Development Fee as may be determined by airport regulator AERA.
The applicants would not be eligible for the award of more than one airport, apart from Kolkata, Chennai and Ahmedabad airports.