The civil aviation ministry has sent the note on the metro airport privatisation issue to the Cabinet this week. According to senior ministry officials, the privatisation process would be completed by September 2003.
The ministry is proposing the formation of joint venture companies for the four airports with Airports Authority of India holding a 5 per cent stake.
The non-metro airports have also been included in the proposal for the airport privatisation sent to the Cabinet.
The sources added that as of now no decision had been taken about the equity-holding pattern in these airports. The ministry plans to invite the expressions of interest for the four metro airports by January 2003.
As far as equity holding for the foreign partner is concerned, though no decision has been taken by the ministry it is likely that the foreign partner will be having a 20 per cent stake in the company. The security and air traffic controls are going to remain with AAI.
The privatisation process has been delayed primarily because the ministry could not take a decision on the privatisation format.
The earlier plan was to lease out the airports which would have required an amendment of the Airports Authority of India Act 1994.