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Stop modernization of Delhi and Mumbai airport plan: CPM
By agencies
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Friday, 02 September 2005, 19:30 IST
NEW DELHI: One day before its Politburo meets here, the CPM issued a one-page statement asking the government to stop the process of modernization of the Delhi and Mumbai airports, pending resolution of critical issues.'' A scrutiny of these critical issues'' shows that they are based more on politics than fact.
Take this for instance.
Halt bidding (for Delhi and Mumbai) because it will impact sustainability of airports that were dependent on these two profit-making ones.
On the contrary, it will generate more revenue for the Airports Authority of India, which it can spend on other airports. As per the restructuring package, it's only AAI, which will get aeronautical revenue, money earned from ATC services and navigation charges, now over half the income at both these airports.
AAI will no longer have to take care of the wage bill at these two airports.
And besides Rs 1.5 billion as lumpsum fee from bidders for each airport, its reserves of Rs 12 billion, that ironically Left-backed unions say should be spent for modernization of Delhi and Mumbai airports, can now be used to develop other airports. AAI already has a plan to develop 45 non-metro airports.
The modernization program envisaged under private ownership does not address the existing inadequacies at these two airports.
There is a whole list of mandatory tasks that have to be completed in a specified timeframe: second runway for Delhi airport, additional taxiways and other infrastructural developmental projects. Plus, quality standards have been specified and will be independently assessed.
Uncertainty over the future of AAI employees currently employed at these airports.
To avoid employees resentment, the joint venture will have to retain at least 40 percent of existing staff at current salary levels. This can go higher because the private consortium, which plans to retain maximum employees, will get preference.
At least half of those left out can be absorbed in other AAI stations where there is shortage of staff. So, bulk of the employees will not lose their jobs and many of them may end up getting more lucrative opportunities with the J-V.
Parliamentary Standing Committee said the modernization program at Mumbai airport will enhance its technical capability by 10 to 15 percent. This will become redundant in addressing growth projections beyond 2012.
The opportunities for non-aeronautical revenue from Mumbai have not been fully explored. At all major airports across the world, this segment records for more revenue than the aeronautical side. It is the reverse in India, even in Mumbai, its busiest airport. The private consortium will look to develop on this potential; it will have to do so, because that's where it will make profits.
In any case, a second airport is envisaged for Mumbai where the consortium responsible for the existing airport will enjoy first rights of refusal.
The government assurance to examine the alternative proposal of the Airports Authority of India Employees Joint Forum has been ignored.
The alternative proposal was a nine-page plan devoid of any specifics, any assessment of the situation at these airports. Following Left pressure, a committee was formed to look into this proposal. As it turns out, the Forum now wants Ministry officials to part with all statistics and data it has collected through its consultants.
This would be unfair on other bidders and despite explanations, the Forum continues to insist. It has promised to draft a detailed proposal but wants technical support from the Ministry and AAI.