Modernisation of Kolkata and Chennai airports by the Airports Authority of India will start next month, soon after the Cabinet Committee on Economic Affairs clears these mega projects.

Announcing this in New Delhi, Civil Aviation Minister Praful Patel said trial runs on the new third runway of IGI Airport would begin in ten days from now. Once operational, it would go a long way to ease the air traffic congestion over the Delhi airspace.

The modernisation plans for both Kolkata and Chennai airports have been cleared by the Public Investment Board and detailed project reports submitted to the government for approval, Patel told the Parliamentary Consultative Committee attached to his ministry.

The two airports, as per the recommendations of the respective state governments, would be developed by the state-owned AAI and not privatised.

In response to issues raised by the members, he informed them that a group of ministers was looking into legalities of setting up of a second airport in Delhi in view of the agreements the government has signed with the GMR-led consortium to modernise the IGI Airport, an official spokesperson said.

Some members raised the issue of construction of an airport in Jhajjar in Haryana, close to the national capital, while one of them wanted the Ministry not to allow any new airline to be given a license to launch operations or induction of new aircraft till the required infrastructure was put in place.

Expressing concern over the rising fuel prices, the minister said the fuel costs had started adversely affecting the entire civil aviation industry.

The base price of ATF in India was high primarily due to subsidisation of other petroleum products, he said, adding that the high taxes levied on jet fuel by state governments further compounded the problem.

Informing the committee that he had raised the issue with Prime Minister Manmohan Singh, Patel said a panel headed by the cabinet secretary has been constituted to examine and assess the problems faced by the industry. The first meeting of this panel would be held later this week.

In the context of naming of airports, he said the Chandigarh Airport was not being renamed as Mohali Airport. He said normally the names of the airports were decided in consultation with the stakeholders, following which the Union Cabinet clearance was sought.

Other issues raised by the members related to the merger of state-owned carriers Indian and Air India, functioning of the regulatory authorities under the civil aviation ministry, air connectivity to different parts of the country and appointment of an ombudsman to address the problems of passengers, the spokesperson said.

• Click here to search for lowest airfares!