Kolkata, Chennai airports set for revamp
06 Mar 2007
New Delhi: A decision on the modernisation of Kolkota and Chennai airports is likely to be taken in the space of two months, according to civil aviation secretary Ashok Chawla. He indicated that a decision with regard to the Kolkota airport might be taken earlier, in about a month's time.
A PTI report quotes Chawla as saying that matters with regard to the two airports have reached a stage, which will now allow the ministry to arrive at an early decision.
The Airports Authority of India (AAI) is expected to take up construction of the Kolkota airport given the West Bengal Government's resolve to hand over the project to this body. The project is expected to cost about Rs2,000 crore, of which 40 per cent is expected to be taken up in the 11th 5-year plan and the remainder in the 12th 5-year plan. According to Chawla, the AAI is expected to implement the entire project out if its internal accruals, though it may resort to market borrowings as well.
As for the Chennai airport, Chawla said the ministry is still awaiting a final decision on the issue of land acquisition for the construction of the second runway. Chawla felt that additional land for a second runway might be a better option than going for a Greenfield site, which would render the existing airport useless. He mentioned that this matter is expected to be resolved in not more than two months.
PPP and custom duties
With respect to other matters, Chawla said that a public-private partnership (PPP) cell would be opened in the aviation ministry, which would aid development of non-aeronautical business of non-metro airports.
Queried about the budget proposal to levy three per cent customs duty on imported aircraft, Chawla clarified that besides customs duty, another 16 per cent is levied as countervailing duty, three per cent as education cess and another three per cent as special duty. He mentioned that his ministry would propose to the finance ministry that the 16 per cent countervailing duty should be removed on aircraft not produced domestically, as countervailing duty is meant to protect domestic producers, and it is clearly not applicable in case of aircraft.
He also mentioned that all airlines that wanted to lease aircraft have been advised to sign their lease deeds before March 31.
