Monday, April 20, 2015

Govt puts UPA's low-cost airport project on hold

New Delhi: The present government has decided to put on hold the previous one's ambitious plan of developing low-cost airports in non-metro cities. However, of the 50 centres identified by the United Progressive Alliance (UPA) government in 2013, work will continue on five low-cost airports - in Karnataka, Rajasthan, Arunachal Pradesh and Odisha - where construction has already been sanctioned.

"The plan to develop the no-frills airports has been put on hold due to lack of commercial viability. Work has been processed for only (these) five airports. In many cases, the government had given approval to states in writing and even completed the land acquisition process," said a ministry official who did not wish to be named.
Also, the official added, the government had set a new criterion that a minimum population size of one million would be the basis for selection of towns where these new airports would be constructed. It will look into the financial viability of setting up such airports in non-metro cities before considering new proposals.
The development comes in the wake of a delay in the government's plans to privatise four airports - those in Ahmedabad, Chennai, Jaipur and Kolkata - after opposition from employees at these airports over changes in their service conditions because of such a move.
20/04/15 Somesh Jha/Business Standard
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