With the recent opening of the technical bids of six of the earlier pre-qualified consortia, the government's plan for restructuring Delhi and Mumbai airports being pursued since 1998 has gained momentum.
The earlier decision to privatise the four metro airports at Delhi, Mumbai, Chennai and Kolkata was revised midway to modernise only Delhi and Mumbai airports through joint ventures, where the Airports Authority of India and other PSUs would hold 26 per cent equity.
Some representative bodies of AAI and allies of the ruling UPA apprehend that the proposed "public-private partnership" model may not deliver a world-class airport.
They contend that the profit-earning AAI's in-house expertise and cash reserve of Rs 3,056 crore (Rs 30.56 billion) would suffice for the proposed modernisation (assessed to be Rs 2,800 crore (Rs 28 billion) for Delhi and Rs 2,600 crore (Rs 26 billion) for Mumbai in the next five years).
They, however, forget that the erstwhile IAAI had been in existence since 1972, with the same objective; but years later the world-class hub airport eludes us. This, at a time when less affluent neighbouring countries have swankier terminals and plush airports.
While the NRI-promoted Kochi International Airport and the under construction PPP model greenfield airports at Bangalore and Hyderabad are ready to beckon the upcoming extra large Airbus 380, our metro airports are not ready to receive them. This is thanks to our "procedures" which, to be fair to AAI and the Ministry of Civil Aviation, are beyond them.
The crux of the matter is that for achieving world class stature, India needs to imbibe not only latest technologies but also extricate itself from the cobweb of procedures, brick-and-mortar mindset in airport planning and the traditional lack of accountability of the PSU airport operator vis-à-vis its personnel. Transformation is difficult to achieve in the predominantly procedure and not result-oriented system sans accountability.
A case in point is the saturated international passenger terminal at the capital's Indira Gandhi International Airport commissioned in 1986. A second module of identical size as per AAI's master plan was to be commissioned in 1990s; but the AAI's project proposal of 1996 that has environmental clearance has not yet crossed the barrier of the Public Investment Board!
To achieve world-class standards, restructuring at least the metro airports through the proposed PPP model and taking stakeholders into confidence is a need, though not the panacea for all evils. The scheme being pursued envisages that security and Air Traffic Control still remain sovereign functions of AAI.
For job protection and to continue to cross subsidise the 115 loss-making AAI airports being maintained for social obligations, stringent conditions have been imposed on the bidders. Mandatory capital expenditure for time-bound upgradations and high service standards have been prescribed with heavy penalty clauses to deal with non-adherence.
An Airport Economic Regulatory Authority is also being contemplated to intervene in case of overcharging, discriminatory treatment or unfair business practices. Effective communication at this juncture will help allay the apprehensions of AAI personnel.
It would be desirable that the government gathers the details of grey areas encountered by Australia in its long-term leasing of its 18 airports for pre-emptive action.
The writer is former member (personnel & administration); director, Mumbai Airport; director, Delhi Airport, AAI.
