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Taskforce dumps plan for corporatisation of 4 airports; highways plan sparks friction in top echelons

Gurdip Singh in New Delhi

The taskforce on infrastructure today decided against corporatisation of four major airports, saying they would be given out on long-term lease.

Taskforce chairman and Planning Commission Deputy Chairman K C Pant said that this would resolve several hurdles. He said legal and financial consultants for giving out airports on a 30-year lease would be appointed in August.

He said the lease may be extended for another 20 years. Reports said there is a difference of opinion on this. The four airports are in Delhi, Bombay, Calcutta and Madras.

A group under the civil aviation secretary will deal with other airports which are to be modernised.

Corporatisation of the airports has been done away with as there are difficulties in valuing the land of the airports.

The National Highway Authority of India will send a note to the Cabinet to streamline procedures for spending money out of the National Roadways Fund. It is learnt that there are differences between the Prime Minister's Office and the finance ministry on this issue.

The NHAI and the PMO want decisions to be taken by the former. However, the finance ministry wants these decisions vetted by the Public Investment Board.

The government plans to build 13,245 km four-lane National Highway criss-crossing the length and breadth of the country. This will connect Delhi, Bombay, Madras as well as extreme southern, northeastern, western and northern provinces.

The estimated cost of this project is Rs 400 billion and it is to be funded through a cess being collected on diesel and petrol.

UNI

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