Wednesday, May 21, 2008

Now, Comm okay with AAI’s Kolkata plan but objects to scale

New Delhi, May 20 Days before its meeting with the parliamentary standing committee on civil aviation, the Planning Commission, in a project appraisal letter to thefinance ministry, has backed the Airport Authority of India’s (AAI) proposal for the modernisation of the Kolkata airport but reiterated its stand, including a review of the size of the new terminal.
In its appraisal letter to the secretary, expenditure, ministry of finance, who is also the chairman of the public investment board (PIB), just ahead of the meeting with the parliamentary panel on May 22, the commission has stated that it does not have any objections to the AAI’s plan for the modernisation and expansion of the Kolkata airport.
It is, however, stuck to its earlier demands. A senior official involved in the process told FE that the commission wants AAI to undertake the modernisation work in two phases and take a re-look at the issue of peak-hour traffic and construction of a terminal to handle 20 million passengers by 2016.
“We have said that we support the proposal but we want the AAI to look into the transportation issue. At present, the airport is not connected by metro rail. The AAI should ensure that as part of the modernisation process, the metro is be extended to connect the airport,” the official said.
The parliamentary panel intervened in the issue following a spat between the commission and civil aviation minister Praful Patel who alleged that the Kolkata modernisation project was delayed due to constant objections raised by the commission.
“The commission is more eager to put most of the modernisation projects on the PPP mode. They have not realised the mess they have created out of privatising the Delhi and Mumbai airports. They will be happy if we put the Kolkata and Chennai airports also on the PPP mode,” a senior Parliamentarian on the committee had said earlier.
Under pressure from the Left parties, the UPA government had to go back on its words and settle for the AAI modernising the Kolkata and Chennai airports instead of the government’s preference for taking up the projects under the PPP route.
Peeved over the delay in clearing the modernisation and expansion works at the Kolkata and Chennai airports and the mess that has been created of the privatisation of Delhi and Mumbai airports, the parliamentary panel headed by CPI-M Politburo member Sitaram Yechury had summoned both the Planning Commission and the civil aviation ministry to explain their stands on the issue.
The Planning Commission, in a meeting of the inter-ministerial group on modernisation of the Kolkata airport had suggested a modular approach for terminal expansion in two phases and said the project seemed “over-ambitious” and would lead to unviable investment.
It also said the AAI’s proposal for a secondary runway at a cost of Rs 35 crore and another Rs 290 crore for construction of ATC towers and upgradation of a railway structure did not look feasible.
The commission also felt that construction of a new terminal building of 1,80,000 sq metre at the Kolkata airport to handle 24.56 million passengers by 2016 is much too big a space as till 2016 most of the space would lie unused. The airport handled 6 million passengers in 2006-07.
On the finances side, the commission pointed that the Kolkata airport had an operating surplus of Rs 33.40 crore in 2006-07. Its ability to absorb and service an investment of about Rs 2,000 crore “is very doubtful”. This would imply an inevitable increase in user charges.
“This modular approach is generally favoured in order to improve the viability of investments, as it would postpone a capital expenditure of about Rs 800 crore,” the commission argued....



http://www.financialexpress.com/news/Now--Comm-okay-with-AAI-s-Kolkata-plan-but-objects-to-scale/312299/

Behind delay in Kolkata, Chennai airport revamp: Ministry planned big, Montek & Co want smaller

NEW DELHI, MAY 15: “...The modernisation of Kolkata and Chennai airport is being delayed due to constant objections being raised by the Planning Commission about the scale and size of these airports we planned to construct.”

That was Civil Aviation Minister Praful Patel in his letter to Montek Singh Ahluwalia soon after the Planning Commission deputy chairman hauled up the Delhi airport developer over what he called the slow pace of work.
Given that 2010 is the deadline for the first phase of modernisation for both Kolkata and Chennai airports, Patel has a reason to raise the red flag. While work at the Kolkata airport is delayed for six months, at Chennai, the delay is four months and counting. This despite the fact that both projects were cleared last year by the Committee on Infrastructure (CoI) headed by the Prime Minister.

The “constant objections,” Patel mentioned refer to the protracted debate over planning “big” (the Ministry’s proposal) and planning small (the Planning Commission’s idea.)
Patel says the Ministry wants to build world-class airports in both cities and that such projects should be decided keeping in mind needs for the next 10-20 years. “We should not repeat mistakes of the past of planning small,” he told The Indian Express. Like the one made in the construction of the current New Delhi international airport, “a plan then approved by the Planning Commission and the Ministry.”

As envisaged by the Ministry, work should have started on the upgradation of Kolkata airport in January this year but the Planning Commission’s charges of “overbuilding” is what is keeping the project from taking off.

The Ministry wants to create a massive integrated terminal at Kolkata spread out across 2.5 km. It also plans to vacate and close down the existing international terminal in the second phase of modernisation. The domestic terminal will continue to be used and its front elevation, sources said, will be re-developed. In Phase III, the domestic terminal will also be replaced with a brand new structure.

“While we have all environmental clearances and so on for the project and have already started the tendering process, we are unable to award them and start work on the airport’s upgradation because we still do not have the government’s go-ahead. That is largely because the Plan Panel is convinced that we will end up overbuilding. We, however, feel that as per our traffic projections, we will require a bigger terminal area,” said a senior Ministry official.

The ministry hopes that it will be able to start work on the Rs 2,000-crore Phase I of the Kolkata airport modernisation project by July this year.
At the Chennai airport, while the Rs 1800-crore first-phase modernisation has been delayed by over four months now largely due to major land acquisition issues, the Planning Commission has the same set of reservations.

“We have been trying to expedite the Chennai airport case but acquisition of some 136 acres in the area is still a problem. While the state has invoked an emergency clause for land acquisition, it’s also tangled in courts. However, we have been assured that by August or September we should be able to start work there. Still, the Plan Panel has sizing issues, they feel we are planning too big an airport.”

Speaking to The Indian Express, Ahluwalia said: “I have been very concerned about the need to cut delays in projects. (In fact) we have speeded up processes very considerably”. He said that it’s the Public Investment Board that clears projects with the Planning Commission’s observations. These can be overruled by the PIB when it clears the project. Finally, PIB’s decision, along with the Commission’s views, is taken to the CCEA for final approval, he said.

Senior officials from the Planning Commission claim that they have just received Chennai’s modernisation proposal and the problem is that contiguous land is not available. On Kolkata, these officials claim, the Plan panel feels it should be modernized on a “modular basis” instead of creating a large airport. And that if this is done on a Public Private Partnership (PPP) model, money saved could be invested in upgrading airports in the North-East.

http://www.indianexpress.com/story/310379.html

Monday, May 19, 2008

Bureaucratic bottlenecks come in way of projects

19-May-2008


The Civil Aviation Ministry and the Planning Commission, or more particularly Aviation Minister Praful Patel and the Planning Commission Deputy Chairman M. S. Ahluwalia, have had a spat over the delays in the implementation of the Delhi and Mumbai airport expansion projects.

This has also spilled over to the clearance for the expansion of the Kolkata and Chennai airports. In effect, it boils down to a blame game between the two authorities that should be ensuring the speedy completion of such critical infrastructure projects.

Though a sad reflection on the state of affairs as it is, this development also throws light on the systemic and bureaucratic bottlenecks in the execution of major infrastructure projects.

It should have come as some relief that the Rajiv Gandhi International Airport in Hyderabad has got off the ground, though not without some hiccups. But they were quickly resolved, along with the other teething problems. The Bengaluru International Airport should open to traffic by the end of May.

A few problems however need to be resolved before then. After making itself clear that there can be no reneging on signed agreements, the Union Civil Aviation Ministry wants to have the cake and eat it too — suggesting that the old HAL airport can also remain open to traffic, at least for the short haul or low cost airlines.

It may only be reflecting the views of the travelling public, or even the airport employees’ unions, but the authorities must have examined these aspects before signing any agreement.

At least now, the revised policy on airports does provide for a case-by-case sanction for airports within 150 km radius of existing one with both of them functioning.

Policy framework

The new policy framework provides for what is called a steering committee to coordinate on airport projects.

Instead of airing their differences in public or accusing each other for the delays, all the agencies and ministries involved in such projects could get that apex forum set up swiftly to iron out these problems.

Though regular review of the projects is taking place and the private sector developers also get back to the ministries or the political leadership to find solutions to the problems they face, it may be much easier to handle it at the official level and early on to make sure molehills do not become mountains.

Instead of having individual reviews, an inter-ministerial panel can perhaps come up with faster solutions that find wider acceptance and quick implementation.

What happened in the recent “exchanges” was Mr. Patel blaming the Planning Commission for raising repeated objections and raising queries on the Delhi airport as well as the plans for Kolkata and Chennai, with Mr. Ahluwalia emphasising that these routine reviews do raise such questions that need to be addressed before execution of major project.

Time schedule

Both Hyderabad and Bangalore airport developers have shown that it is possible to build greenfield airports in three years time. With better cooperation and interaction between government agencies and the developers, this process could even be speeded up a little. There are obvious differences between building greenfield airports, where there is no activity, and expanding or modernising existing airports that remain fully functional. Delhi and Mumbai fall into the second category, and so will Kolkata and Chennai. Plans have to be drawn keeping that in mind. To ensure timely completion of these projects, the developers and contractors need more, not less assistance from the authorities.

Before work on the Chennai and Kolkata airports begin, the Aviation Ministry will do well to resolve all these issues and make sure that the problems faced by Delhi and Mumbai do not crop up again in the other two metropolis. There is already a clear slippage in growth in the key infrastructure sectors of the economy, let not the aviation sector add on to this problem.



http://www.hindu.com/biz/2008/05/19/stories/2008051950111600.htm

Friday, May 16, 2008

Now, parliament panel steps in airport mess

17-May-2008

Peeved over the delay in clearing the modernisation and expansion works at the Kolkata and Chennai airports and the mess that has been created of the privatisation of Delhi and Mumbai airports, the parliamentary committee on civil aviation has summoned both the Planning Commission and the civil aviation ministry for a meeting on May 22 to explain their stands on the issue.

Speaking to FE, a senior parliamentarian on the committee said, “The Planning Commission has been creating some trouble for some time now. Frankly speaking, it has crossed its line (now). It has been raising too many objections. We want to know the reason behind this. Their objections have delayed clearance of the projects.”

“The Commission is more eager to put most of the modernisation projects on the PPP mode. They have not realised the mess they have created out of privatising the Delhi and Mumbai airports. They will be happy if we put the Kolkata and Chennai airports also on the PPP mode,” the member added.

Incidentally, the Airport Authority of India (AAI)'s proposal for modernising Kolkata airport at an estimated cost of Rs 1,943 crore had been termed an “unviable investment” and “over-ambitious” by the Commission’s officials at a recent inter-ministerial group meeting.

“While the Kolkata airport should certainly be modernised to world class standards, the efficiency of investments would have to be borne in mind in order to ensure that the user charges/tariffs to be borne by passengers do not increase significantly when the proposed regulator determines these charges,” the Commission had argued at the inter-ministerial group meeting.

In line with a decision of the Committee on Infrastructure, the Commission further suggested a modular approach for terminal expansion in two phases. It also said the AAI's proposal for a secondary runway at a cost of Rs 35 crore and another Rs 290 crore for constructing Air Traffic Controllers’ towers and upgrading a railway structure do not look feasible.

Interestingly, the Commission feels that construction of a new terminal building of 1,80,000 square metres at the Kolkata airport to handle 24.56 million passengers by 2016 is much too big a space as till 2016, most of the space would lie unused. The airport handled 6 million passengers in 2006-07.

On the finances side, the Commission pointed that the Kolkata airport had an operating surplus of Rs 33.40 crore in 2006-07 and its ability to absorb and service an investment of about Rs 2,000 crore “is very doubtful”. This would imply an inevitable increase in user charges.

The Commission has suggested that the IMG approve an action plan consisting of two equal phases of 90,000 sqm each and the construction on the second phase should start when the traffic reached 15 million per annum. “This modular approach is generally favoured in order to improve the viability of investments, as it would postpone a capital expenditure of about Rs 800 crore,” the Commission argued.


http://www.financialexpress.com/news/Now--parliament-panel-steps-in-airport-mess/310706/

Thursday, May 15, 2008

Greenfield airport site feasible, says study

16-May-2008


Project awaits technical approval
Emphasis on connectivity to site


CHENNAI: While the Airports Authority of India prepares to begin work on the modernisation and expansion of Chennai airport in the coming weeks, it has also taken the first steps towards starting work on its greenfield airport project in Sriperumbudur.

The AAI has conducted a techno-feasibility study, and an official told The Hindu that the site was feasible for the greenfield airport.

The proposal is currently with the International Civil Aviation Organisation awaiting approval. While the AAI initially planned to construct four runways on the site, it will now build two parallel runways. When completed, the project will take care of Chennai’s aviation requirements “for the next 50 years,” the official said.

The State government has identified 4,820.66 acres of land in Tirumangalam, Mambakkam, Irungulam, Vadamangalam, Padicherry, Sirukilai, Kilai and Sriperumbudur in Sriperumbudur taluk, and Tirupandiyur and Vayalur in Tiruvallur taluk for the project, and around 6,540 people and 1,078 homes will be dislocated by the development.

The lands marked out for the greenfield airport are close to the Chennai-Bangalore National Highway. A State government official said that developing connectivity to the proposed site will be strongly emphasised in the planning for the project as the government was keen on avoiding a repeat of the teething troubles faced in Bangalore and Hyderabad, where similar greenfield airports were set up on the outskirts of the two cities.

The government was also exploring the possibility of providing rail connectivity to the proposed site from the line at Avadi, and also developing the national highway to Sriperumbudur as an expressway concurrently. While the AAI had initially slated the greenfield project for completion before 2015, the go-ahead for the expansion plan at Meenambakkam will give it more time to develop the project.

According to AAI sources, the expansion plan will enhance capacity and meet traffic demands till at least 2016 or 2017. The AAI has invested more than Rs. 1,800 crore in the expansion project, and is expected to keep both airports open.




http://www.hindu.com/2008/05/16/stories/2008051650030100.htm

Minister hits back, blames Delhi airport delay on Plan Panel

14-May-2008


A day after the Planning Commission rapped the Delhi International Airport Limited (DIAL) for the slow progress in upgradation of the capital’s airport, Civil Aviation Minister Praful Patel on Tuesday hit back at the Plan Panel.

In a strongly-worded letter, Patel has written to Deputy Chairman Montek Singh Ahluwalia how it is the Commission’s “constant objections” that had earlier delayed the awarding process for joint ventures of both Delhi and Mumbai airports and how it is now dragging its feet on the Kolkata and Chennai airport modernisation process.

The Commission had come down heavily on the GMR-run DIAL at a review meeting on Monday for its slow progress, terming it a complete failure. The Commission had said the situation at the airport was miserable, as instead of decreasing congestion, DIAL had only increased congestion. DIAL was further told that this was leading to a perception that bringing in a private partner for the upgradation was no help at all and this was hitting the country’s global image.

Patel has reacted rather quickly to the Planning Commission’s sudden interest in DIAL. Pointing out how he has learnt through newspaper reports about Ahluwalia’s “anguish over the slow pace of progress in the modernisation and development work” at the Delhi airport, the minister said he hoped it would bring about “necessary changes and improvement in a time-bound manner”.

The minister, however, has not minced words in pointing out how it is the Planning Commission officials who have been delaying various projects. Sources in the Planning Commission say the letter refers to how the commission’s officials had almost “completely derailed” the process of awarding joint ventures for Mumbai and Delhi airports and only the Deputy Commissioner’s intervention had helped save the deal. The minister, it is learnt, has also noted that projects should be decided keeping in mind the needs for the next 10-20 years and “not to repeat the past mistakes” like those made in construction of the current IGI airport international terminal — “a plan then approved by the Planning Commission and the Ministry”.

Patel has written that he takes “this opportunity” to bring to Ahluwalia’s notice how the modernisation of Kolkata and Chennai airports is also being delayed due to “constant objections being raised by the Planning Commission about the scale and size of these airports”. These endless objections are holding up the project despite the fact that the Committee on Infrastructure headed by the Prime Minister has “categorically approved the projects”.

The minister winds off his letter rather sarcastically, saying he hoped the Deputy Chairman’s visits across Delhi and the country would draw his attention to “various problems of roads, electricity, water, sewerage system, public transport” and that he would address these problems in a “time-bound manner”.

Patel’s letter comes soon after Left leader Sitaram Yechury wrote to the PM on the issue of delay in the modernisation of Kolkata and Chennai airports and complained that “backdoor privatisation” of the 35 non-metro airports was being planned.



http://www।indianexpress.com/story/309223.html

‘Chennai, Kolkata airports modernisation delayed by Plan panel’

13-May-2008


The Ministry of Civil Aviation has said that the modernisation of Chennai and Kolkata airports is being delayed due to the constant objections being raised by the Planning Commission on the scale and size of these airports.


A letter from the Ministry to the Deputy Chairman, Planning Commission, Mr Montek Singh Ahluwalia, points out that the airports are getting delayed despite the Committee on Infrastructure, which is headed by the Prime Minister, Dr Manmohan Singh, having ‘categorically approved’ the projects.


Sources said that the letter was written by the Minister for Civil Aviation, Mr Praful Patel.

The communication adds that the plans for the two airports were drawn up keeping in view the needs of the country 10-20 years down the line and also so as not to repeat the past mistakes made at the time of construction of the current IGI airport international terminal in the Capital.

The letter was sent a day after the Deputy Chairman held a review meeting with officials of Delhi Airport Private Ltd (DIAL), the joint venture company set up to manage the modernisation of the airport.

http://www।thehindubusinessline.com/2008/05/14/stories/2008051451961000.हतं

Saturday, May 10, 2008

Environmentalists concerned about airport expansion project

10-May-2008

CHENNAI: The airport expansion project, which involves extension of a runway across the Adyar river, has raised concern among environmentalists, who say the plan will increase the likelihood of flooding in surrounding areas.

As part of its 1069.99 acre, Rs.1,800-crore project, the Airports Authority of India (AAI) will extend the 6,500-foot cross runway and build a taxi track across the Adyar river, by constructing a bund over the water. The AAI will also construct a second parallel runway on the river’s northern embankment.

“A runway across the river is dangerous as it will…lead to higher inflow into the river,” warns Ranjit Daniels, director of Care Earth. “Technology may help minimise the flooding of the runway per se, but there is no way the surroundings can be kept safe.”

The Adyar river is the largest outlet from the Chembarambakkam lake, which lies 7 km to the north-west of the proposed site. Dr. Daniels says the river drains rainwater from a much larger surrounding area, most of which was “already choked,” and such a project would affect drainage patterns and increase the likelihood of flooding.

AAI stand

The AAI rejects these concerns. It has already submitted a feasibility report and a rapid Environmental Impact Assessment (EIA) to the Ministry of Environment and Forests for approval (although only for the first phase of its project, which involves the runway extension). A pre-Public Investment Board meeting for the project is scheduled to be held in New Delhi on Monday, and sources within the AAI indicated that they expect to receive clearance from various Ministries to allow work to begin next month.

The AAI’s feasibility report states there will be “no changes in water bodies or the land surface that will affect drainage or run-off.”

Claims disputed

The Citizen consumer and civic Action Group (CAG), however, disputes these claims.

“The report fails to take into account what the current water availability in the area is, and for an EIA, this is not acceptable and is incomplete,” says Amritha Kasturi Rangan of CAG. “The mitigation measures are not clearly spelled out at all. For instance, the report says waste will be ‘suitably’ disposed of, but they haven’t identified any sites for disposable or how much waste will be generated.”

According to former pilot Capt. A. Ranganathan, flooding isn’t just a threat to surrounding areas, but also to the functioning of the airport. “In 2005, when the whole area flooded, the river level was up to the taxi track level,” he says. In that instance, the airport was temporarily closed and a section of the boundary wall had to be knocked down to allow water to drain.

A senior AAI official told The Hindu that flood levels had been accounted for in planning the extension of the runway, which would be raised high enough to prevent such an incident.

Approval from the Ministry of Environment and Forests also requires a public hearing to be held for residents in surrounding areas to voice their concerns. Kancheepuram Collector Santosh K. Misra told The Hindu that the administration will shortly announce when the hearing will be held.


http://www.hindu.com/2008/05/10/stories/2008051060371200.htm

Patel: modernisation of airports on track

9-May-2008

NEW DELHI: Union Civil Aviation Minister Praful Patel on Friday said the modernisation programme of 35 non-metro airports was on track and said there was no major delay as many of the airports were under various stages of completion.

Reacting to a letter written to Prime Minister Manmohan Singh by CPI (M) leader Sitaram Yechury — expressing apprehension that airports would go into private hands — Mr. Patel said airport terminals would be constructed, maintained and operated by the public sector Airports Authority of India (AAI). “There are divergent views in the Inter Ministerial Group (IMG) but that does not mean that the Ministry has taken its final view. There is no ambiguity in our approach. We are firm in our commitment and there is no question of going back on it,” he told reporters here.

Joint venture

He said city side development of non-metro airports would be taken up by a joint venture in which the AAI would remain a major partner.

Referring to modernisation of Kolkata and Chennai airports, he said there were some issues and the process would be completed soon.

In his letter, Mr. Yechury said if Kolkata, Chennai and 35 non-metro airports were privatised, the credibility of the “government will come under question.” He alleged that certain arms of the government were delaying modernisation to facilitate privatisation through the back door.

http://www.hindu.com/2008/05/10/stories/2008051054731300.htm

Residents oppose airport expansion

9-May-2008

Chennai: After several attempts at negotiations and an unsuccessful court battle, residents of Manapakkam and Tharapakkam have decided to go all out against the Chennai airport expansion project. More than 100 people who have invested in housing projects promoted by Macro Marvel in Manapakkam and EVP Township in Tharapakkam on Thursday pledged not to hand over their land or houses to the district administration, even though the area has been marked for acquisition.

Two residential projects fall within the area demarcated for acquisition for airport expansion. The government kicked off the land acquisition process when it started sending out notices to residents in November, 2007. The Airports Authority of India (AAI) plans to build a parallel runway, a taxi way and aircraft bays once the land is handed over.

Residents who are already living in Macro Marvel and those who have invested Rs 30 lakh and more on land and house in EVP Housing today protested against the district administration’s move to acquire land at a meeting with district collector Santosh K Mishra.

Residents raised doubts over the AAI’s plan to build a parallel runway when the government had already announced another greenfield airport project. They also demanded that the residential areas located in the periphery of the airport land should be exempted.

They alleged that the state government had misled the people because even after registration of land was frozen at Manapakkam, Tharapakkam, Gerugambakkam, and Kolapakkam, the registrar office at Pammal was registering land, said Sumathi, a resident.

She has purchased 2,000 square feet at a project announced by EVP Township last year. However, the entire project has been marked for acquisition for airport expansion. “This looks like a non-viable project because the documents obtained using right to information shows that the AAI has not applied for clearance from Public Investment Board for constructing a parallel runway,” she said

Karthick, who purchased a 1,350-sq ft house for Rs 24 lakh from EVP said: “We have tried to reason with the collector that there was no need for construction of the parallel runway because three runways cannot be used at a time.”

Collector Santosh Mishra assured the residents that their demands would be conveyed to the state government and the AAI.


http://epaper.timesofindia.com/