Settling the long drawn uncertainty about the modernisation of the metro airports, Finance Minister Jaswant Singh on Friday announced in his Budget speech that two separate companies would be formed to raise the airports in Delhi and Mumbai to international standards.
However, the plan outlay for civil aviation was scaled down from the revised Rs 2028.64 crore (Rs 20.28 billion) in 2002-2003 to Rs 1763.26 crore (Rs 17.63 billion) in 2003-2004.
The two companies will be set up with initial equal equity participation from the Airports Authority of India and on completion the management of the these airports will be leased out, the finance minister said.
The Union Cabinet had in December asked the ministries of Civil Aviation and Finance to jointly work out the route to be taken for the modernisation of the metro airports. The announcement in the Budget followed the consent given by the Cabinet.
When Singh declared that Delhi and Mumbai, as principal hubs of international travel to India, will be taken up for modernisation to international standards, members in the Lok Sabha questioned why the Chennai and Kolkata airports had not figured.
The initial plans of the government included the long-term lease of all the four metro airports.
While the allocation in the Budget for the Airports Authority of India has gone up to Rs 800 crore (Rs 8 billion) from Rs 717.29 crore (Rs 7.17 billion), the outlay for Air India and Indian Airlines have been trimmed to Rs 600.81 crore (Rs 6 billion) and Rs 280 crore (Rs 2.8 billion) respectively.
Budgetary support has been given to AAI for upgradation of the Amritsar airport and for providing operational improvements in various airports in the North Eastern region and Sikkim and crucial areas like Jammu and Kashmir, Leh and Lakshadweep.
UNI
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