The Government could allow the private sector to hold 100 per cent equity in new companies formed to take up the modernisation of six airports, including those in Chennai, Kolkata and Lucknow.
The modernisation process is set to start soon with a Request for Qualification, which will set basic conditions for those who want to participate in the process. The RFQ process is expected to start for the Chennai and Lucknow airports in the next few days.
The current thinking in the Government is to transfer the assets of all the six airports to successful bidders, who will be decided on the basis of their revenue-share offer to the Airports Authority of India (AAI), which currently owns the airports. An airport asset will then be transferred to a new company in which the private entity will hold 100 per cent equity.
Though the AAI will not invest in the new company, it will hold a golden share and have representation on its board that will allow it to block any resolution. The airport asset will be transferred to the new company for 30 years.
The implementation of this model will be a departure from what is followed in Delhi and Mumbai where the AAI has 26 per cent equity in the new companies formed to manage the airports.
The decision to experiment with the new model for modernising airports is being examined as the AAI does not have a say in the operations and management of either the Delhi or Mumbai airports, a senior Ministry of Civil Aviation official said.
Ahmedabad, Guwahati and Jaipur are the other airports where this new method of modernising will be tried.
According to government officials, the Tamil Nadu and West Bengal governments are yet to be approached for taking up the new airport proposal. West Bengal had earlier asked the AAI to take up modernisation of the Kolkata airport.
ashwini.phadnis@thehindu.co.in