AP warns against Airport Authority Modification Bill

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KAKINADA: The state government has highly opposed some modifications in the Airports Economic Regulatory Authority of India (Modification) Costs 2021 as they would result in monopolisation in the civil air travel sector.

Margani Bharat, YSRC Parliamentary Party Chief Whip, who is on the civil air travel parliamentary standing committee, opposed the Expense in the Airport Economic Regulatory Committee conference at New Delhi on Thursday and raised several problems that he said would show harmful to airports and guests.

He clarified that the state was not opposing privatization, however would oppose monopoly in privatisation. He said that the modification of Section 2(i) of the parent Act has a really deep meaning and the repercussions would be awful.

He stated that the objective behind the proposed change was to privatise airports under AAI and the Centre would bundle or match some airports and enforce development charges and other tariffs on travelers to benefit the concessionaire.

He stated that the structure for the bill was in 2019 as the then AAI chairman made a declaration in 2019 that Vijayawada and Tirupati airports would be privatised. Bharat stated that he had opposed the statement at that time. The MP stated that Rs 750 crore was assigned for the growth and modernisation of Vijayawada and Rs 200 crore for the Tirupati airport.

He questioned how AAI and ministry of civil aviation were validating the relocation for privatisation after investing nearly Rs 1,000 crore for their growth and modernisation. He stated that there are 6 airports in Andhra Pradesh and 3 of them are worldwide airports. Kurnool airport started its operations in March and can’t examine its viability while Rajamahendravaram airport is incurring losses Rs 32.84 crore.

Now when this Costs becomes an Act, the ministry will turn over all these airports to private players either through bunching or pairing and the personal gamers would fleece passengers.

Bharat said that the civil aviation ministry has actually decided to offer its residuary stake in Delhi, Mumbai, Bengaluru and Hyderabad airports and the federal government has actually provided these airports on PPP mode and concessioners are allowed to run for 25 to 30 years. If GOI stakes are sold, there will not be any control on airports.

Infographics:

– Margani Bharat says India is the fastest-growing air travel sector between 2014-15 and 2019-20 at nearly 15 per cent.

– In Andhra Pradesh, the development has gone up from 28 lakh to 55 lakh, much greater than the national average.

– AAI’s vision till 2026 is to be the pre-eminent air navigation service company with international recognition, consequently serving as a catalyst for financial development in the locations they serve.


Released at Thu, 24 Jun 2021 18:52:24 +0000