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Cabinet to consider airport privatisation proposal soon
New Delhi, July 20: The Union Cabinet is likely to consider the modalities of restructuring of airports at Delhi and Mumbai soon, with the ministries of finance and civil aviation sorting out their differences, especially over the quantum of stake the Airports Authority of India (AAI) would hold, according to sources here today.
New Delhi, July 20: The Union Cabinet is likely to consider the modalities of restructuring of airports at Delhi and Mumbai soon, with the ministries of finance and civil aviation sorting out their differences, especially over the quantum of stake the Airports Authority of India (AAI) would hold, according to sources here today.
A formal note would be shortly sent out detailing the
proposals for the Union Cabinet to consider, sources told.
The AAI, which is in the process of forming two joint venture companies for Delhi and Mumbai airports, would hold 26 per cent stake, while the JV partner would have the remaining percentage, the sources said, adding the entire 74 per cent stake could be held by foreign parties.
Earlier, the Civil Aviation Ministry had proposed a ten per cent stake for the AAI with a 'golden share', but Finance Ministry had favoured 26 per cent. This was accepted by the Civil Aviation Ministry, the sources said.
Once selected, there would be a clear mandate for the private partner to develop or construct certain minimum facilities at these two airports, after their concept designs were approved by the government, they said.
The proposal also includes a concession agreement under which the entire assets of the two airports, barring those pertaining to Air Traffic Control (ATC) and security, would be handed over to joint venture partners of AAI for 30 years on a renewable basis.
The restructuring proposal would not be affected by the bill to amend the AAI Act, which was passed by Lok Sabha in the budget session and is now pending before the Rajya Sabha, the sources said. Bureau Report
The AAI, which is in the process of forming two joint venture companies for Delhi and Mumbai airports, would hold 26 per cent stake, while the JV partner would have the remaining percentage, the sources said, adding the entire 74 per cent stake could be held by foreign parties.
Earlier, the Civil Aviation Ministry had proposed a ten per cent stake for the AAI with a 'golden share', but Finance Ministry had favoured 26 per cent. This was accepted by the Civil Aviation Ministry, the sources said.
Once selected, there would be a clear mandate for the private partner to develop or construct certain minimum facilities at these two airports, after their concept designs were approved by the government, they said.
The proposal also includes a concession agreement under which the entire assets of the two airports, barring those pertaining to Air Traffic Control (ATC) and security, would be handed over to joint venture partners of AAI for 30 years on a renewable basis.
The restructuring proposal would not be affected by the bill to amend the AAI Act, which was passed by Lok Sabha in the budget session and is now pending before the Rajya Sabha, the sources said. Bureau Report