press trust of india 
NEW DELHI, 23 JUNE: With civil aviation ministry fast-tracking privatisation of management of Kolkata and Chennai airports, the Airports Authority of India (AAI) has set up a cell to execute public private partnerships 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, officials sources 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,” Mr 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. KID would also issue RFPs for Kolkata and Chennai airports, they said, adding that the cell would function till the project was complete and disbanded thereafter.
However, the Ministry has not come out with a time-frame for the bidding process, as also the guidelines for the selected bidders. No decision has been taken on whether the selected entity would have to pay for the takeover on an upfront basis or have a revenue-share model like the one in place at Delhi and Mumbai airports, the sources said.
Another crucial issue not decided yet is the fate of the employees of the AAI employed in these two airports. In case of Delhi and Mumbai airports, the joint venture companies had offered to take the AAI employees, but a majority decided to remain with the state-owned airport operator.
The employees, owing allegiance to the Airports Authority Employees’ Union (AAEU), had last week held lunch-hour demonstrations at several cities to protest the government’s move to privatise Kolkata and Chennai airports.