Succumbing to pressures from the Left parties, the committee on infrastructure, set up under the chairmanship of Prime Minister Manmohan Singh, has decided to bring the plan for modernisation and upgrade of the Kolkata airport under the Airport Authority of India.

The AAI will put in Rs 1,542 crore (Rs 15.42 billion) to upgrade the airport, which would include construction of a new terminal for domestic and international traffic and increasing its capacity to handle over 20 million passengers annually from the 4.4 million currently. Out of this, 15 million passengers are estimated to be for domestic flights while the rest would be for international flights.

About Rs 1,300 crore (Rs 13 billion) will be spent by the AAI for a new terminal. Rupees hundred crore (Rs 1 billion) will be spent for upgrading the cargo handling facility as well as improving the runaway, while the upgrade of navigational systems would require another Rs 100 crore (Rs 1 billion).

Meanwhile, the government has deferred its decision on the privatisation of the Chennai airport. Briefing reporters in Delhi, Civil Aviation Minister Praful Patel said, "There is no clarity on land and we will take a final decision in consultation with the state government and go by their approach." The committee will meet again on May 31 to take a final call on the privatisation of the Chennai airport.

Patel said the first phase of modernisation of the Kolkata airport would be completed by 2009-10. The decision on setting up of greenfield airports in Navi Mumbai and Pune had not been taken as the state government had yet to submit a final report, he added.

Welcoming the move on the Kolkata airport, CPI (M) General Secretary Sitaram Yechury said, "It is a welcome step as the modernisation plan was getting unduly delayed all these months."

The Left has been vehemently opposing the move to privatise existing airports. It has opposed the privitisation plan of the Chennai airport too due to unavailability of land for expansion. It has instead suggested a greenfield project for the city.