Union minister says airports are not privatized but leased in public interest
Union minister says airports are not privatized but leased in public interest
The central government does not support the Tamil Nadu government’s position on proportionately sharing the value or revenue earned from transfer of assets by the Airports Authority of India (AAI) or the Center in the event of privatization of airports.
Replying to a question raised by Ram Nath Thakur in Rajya Sabha on the issue of some states claiming stake in privatization of airports, Union Minister of State for Civil Aviation General (Retd) VK Singh referred to the proposal of the state government. and stressed that airports “are not privatized, but leased out in the public interest for better management, utilizing the efficiency of the private sector and investments. AAI lands the airport during the entire lease period.” continues to be the owner of the property, and the land and other assets shall return to AAI after the expiry of the lease period.
The land for the airports was “acquired and transferred” by the state government “voluntarily and unconditionally”, and the airport land was vested with the authority in terms of the AAI Act, 1994. Therefore, the state government cannot “claim” the revenue earned by AAI from such land, whether the airports are run by AAI or through a third party by way of lease.
The Union minister said the states and their residents were the ‘ultimate’ beneficiaries of the upgraded airport infrastructure and facilities created by “private partners who operate, manage and develop the airport on lease under public-private partnerships”. He said that the airport has emerged as a hub of economic activity, which has had a manifold impact on the state’s economy. “The revenue from airports leased to AAI is also used for developing airport infrastructure across the country,” he said.
According to the current year’s policy note of the state’s major industries department, the state government had also decided that at an “appropriate stage”, it was to be ensured that the value of the land was converted into state government’s equity in the airport. it was done. Prior to the transfer of any asset to a private party, a project special purpose vehicle or a suitable revenue sharing arrangement was made in proportion to the investment.
Coming in support of Tamil Nadu, the governments of Chhattisgarh and Jharkhand also followed suit and claimed a share in the revenue share from the privatization of airports.