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India to complete airport sale by end-August
New Delhi, Feb 23: The privatisation of two of India`s biggest airports will not be delayed by national elections and is expected to be completed by the end of August, the civil aviation minister said on Monday.
New Delhi, Feb 23: The privatisation of two of India's biggest airports will not be delayed by national elections and is expected to be completed by the end of August, the civil aviation minister said on Monday.
But government approval for the plans of state-run carriers Indian Airlines Ltd and Air-India Ltd to buy 71 passenger jets, mostly from Europe's Airbus SAS, will be considered after the elections, Rajiv Pratap Rudy told reporters at an industry meet.
Key government decisions such as big ticket purchases and sales are put off after elections are announced.
India is likely to go to the polls in April-May, after the ruling government dissolved parliament on February 6, eight months ahead of schedule.
"Absolutely not," Rudy said, when asked whether the elections would delay the privatisation of the airports in New Delhi and Bombay.
"The privatisation of Bombay and Delhi airports are on a fast track and expressions of interest have already been invited...The privatisation will almost be over by August-end," Rudy said.
Last September, the union cabinet approved a plan to spin off the New Delhi and Bombay airports into companies and sell 74 percent stakes in them to private firms in a bid to upgrade them to world standards.
State-owned Airports Authority of India, the umbrella body that manages the country's 125 airports, will hold the rest.
Rudy said bidders will be shortlisted two months after they submit expressions of interest on June 4.
More than a decade into India's economic liberalisation programme, the aviation industry has been largely untouched by changes that have spurred investment and improved services in several sectors such as telecommunications.
The government is now trying to introduce a liberal aviation industry policy to help cut the steep cost of air travel and improve the quality of air services.
Rudy said Indian Airlines' and Air-India's plans to buy planes as part of their five-year fleet expansion and renewal programme will be considered by the new government.
"This is a major financial decision," Rudy said about the 71-plane deal, estimated to cost $4.4 billion.
Bureau Report
Key government decisions such as big ticket purchases and sales are put off after elections are announced.
India is likely to go to the polls in April-May, after the ruling government dissolved parliament on February 6, eight months ahead of schedule.
"Absolutely not," Rudy said, when asked whether the elections would delay the privatisation of the airports in New Delhi and Bombay.
"The privatisation of Bombay and Delhi airports are on a fast track and expressions of interest have already been invited...The privatisation will almost be over by August-end," Rudy said.
Last September, the union cabinet approved a plan to spin off the New Delhi and Bombay airports into companies and sell 74 percent stakes in them to private firms in a bid to upgrade them to world standards.
State-owned Airports Authority of India, the umbrella body that manages the country's 125 airports, will hold the rest.
Rudy said bidders will be shortlisted two months after they submit expressions of interest on June 4.
More than a decade into India's economic liberalisation programme, the aviation industry has been largely untouched by changes that have spurred investment and improved services in several sectors such as telecommunications.
The government is now trying to introduce a liberal aviation industry policy to help cut the steep cost of air travel and improve the quality of air services.
Rudy said Indian Airlines' and Air-India's plans to buy planes as part of their five-year fleet expansion and renewal programme will be considered by the new government.
"This is a major financial decision," Rudy said about the 71-plane deal, estimated to cost $4.4 billion.
Bureau Report