Core projects may not need green nod

7-Mar-08

Environmental activists say it will dilute India’s already weak environmental laws

New Delhi: In an effort to accelerate big-ticket infrastructure projects, the government is considering changes in existing environmental laws including a withdrawal of mandatory environmental clearance ahead of modernization of airports and ports. However, greenfield projects that are developed from scratch (the airport and port projects will largely require redevelopment) will continue to require this clearance.
While companies welcomed this change, environmental activists say it will dilute India’s already weak environmental laws.
The changes being considered also include one that will address a long-time complaint of activists by making it mandatory for environmental consultants to register with the Quality Council of India, an independent body created by the government. This will prevent the recurrence of incidents where some environmental consultants have managed to obtain clearances for projects on the basis of reports that have been subsequently found to be fraudulent.
A Change Too Many? (Graphic)
The changes will be incorporated in the ongoing review of the Environmental Impact Assessment, or EIA notification, which was last modified in 2006. It was first notified in 1994 under the Environment Protection Act, 1986 and has been revised 15 times since. The EIA is the report on the basis of which the government gives the environmental clearance to projects.
The changes, which are currently being considered by the ministry of environment and forests (MoEF), are expected to be released for public scrutiny on 8 March, according to officials associated with the process who did not wish to be identified.
Companies say the changes will speed things up in the infrastructure business where delays are common.
“As of now, there are 700 industrial projects waiting to be put on the agenda of the clearance committee. It is a welcome move because infrastructure projects need to be put on the fast track. Moreover, if the project has already been inspected once, then there is no need to re-scrutinize it,” said K.P. Nyati, head, environment policy division, Confederation of Indian Industry, an industry lobby group.
Environmental activists do not agree. “This is a critical issue. The Chennai airport is being modernized and expanded and there is a lot of protest. The expansion will dislocate a lot of people as well as affect a neighbouring river, which would involve a clearance,” said Leo Saldanha, coordinator, Environment Support Group, an activist group.
A senior official at the civil aviation ministry who did not wish to be identified said while it would still be difficult to get environmental clearance for large airports being built from scratch, the relaxation would help the cause of several airports that are being upgraded across the country.
Several existing but unused airstrips in the country are likely to be developed into airports through the so-called public-private partnership model (where the government and a private sector firm partner) over the coming years.
“The EIA notification has already been significantly diluted in 2006 towards facilitating the clearance of projects. Today, its text and implementation are clearly directed towards mitigation and management of impacts rather than the precautionary principle and rejection of projects with critical impacts,” the official added.
MoEF is yet again going ahead with amendments in a non-transparent manner. “Project proponents in any case see the environment clearance process as an impediment,” said Kanchi Kohli, member, Kalpvriksh Environment Support Group, an activist group.
The change regarding the mandatory registration of consultants hasn’t gone downwell with either companies or activists.
Several consultants have executed fraudulent or inadequate EIAs; some have even copied EIAs used in the past. Mint has reported several such cases (see box). The registration process could prevent a recurrence of such instances.
Nyati, however, said this might not be the correct measure right now.
“We (CII) proposed that the registration process reach a critical mass of consultants before the process is made mandatory. Till then, it should be encouraged. For instance, if a project proponent has the EIA done by a registered consultant, then the project will be fast tracked,” added Nyati, who is also on the registration committee under the QCI. He expects that the critical mass will be reached in four months.
Others say that just registration is not adequate. “We have been demanding this for a long time but just a list doesn’t solve everything. It is like the case of PAN (permanent account number) cards and income tax. Just because someone has a PAN card doesn’t mean he will not evade tax,” said Saldanha.
The ministry official agreed with this.
He said registration could end up being more of an exercise in documentation.
Another change that has been proposed is a common set of standards, or terms of reference (TOR), for those projects, classified as Category B, that require a clearance only from the state government.
At present, each project has an individual set of TORs for getting an EIA.
While agreeing that the overall quality of EIA consultants is not up to the mark, Nyati said: “QCI will eventually improve the quality of EIA consultants. We propose that generalized TORs be set by the authorities for certain sectors, so that even not so good EIA consultants have a certain guideline to follow.”


http://www.livemint.com/2008/03/07003444/Core-projects-may-not-need-gre.html

Collector held meeting with AAI Director 5-Mar-08

Ministry of Civil Aviation Presentation 2008

Kolkata and Chennai Airports
Kolkata airport to be modernized in Public Sector by the state owned Airports Authority of India Project span by March 2010
Investment US$ 340 million

Chennai airport : Modernization under active consideration; all options open.

www.ibef.org/download/INDIA_ASHOK_CHAWLA_web_version.ppt

Centre's approach superficial:PMK

1-Mar-2008


In a surprise attack on the Centre, founder president of the PMK, Dr S Ramadoss today said the Union budget lacked solutions for the problems faced by the farmers of the country.
He said the annual financial statement did not come out with ways and means to curb inflation.
.
Speaking to reporters on the sidelines of his anti-alcohol campaign here, Ramadoss said the Finance Bill did not speak of curbing the soaring inflation.
'The cost of all essential commodities are rising. A plan should be implemented to contain the price rise,' the PMK leader said and added that the budget had sought to superficially address the concerns of farmers.
'A plan should be drawn up to stop suicides and save the farming community from debt trap,' Ramadoss said.
It is pathetic that farmers are unable to fix price for their produce when industries and other sectors do it. No agri-products should be allowed to be imported.'The production must be increased so that we could export them,' he said.A separate budget should be prepared for agriculture sector.
'Efforts must aim at making farming a lucrative profession.'Tamilnadu is facing serious river-water disputes with neighbouring States.
Prime Minister Manmohan Singh should convene a meeting of Chief Ministers of southern States to resolve inter-State river water disputes.The government must stop efforts to acquire 640 acres of lands for airport expansion in Chennai.
'If this was not done, we would resort to agitation and it will be led by me,' Ramadoss said.Expressing happiness at the response of the people to his anti-liqour rally from Tuticorin, the PMK leader hoped that the campaign will soon take the form of a people's movement.
Refuting claims that prohibition will empty the State coffers, he said, alternate avenues were available to bring revenue to the government.
'We will demonstrate this in our draft budget to be presented next week,' he said.

http://mail.google.com/mail/#inbox/11861bc2b60c60b5

Soaring competition in domestic skies cuts into profits

29-Feb-2008
Consolidation is perhaps inevitable: Economic Survey
Rapid growth of economy accompanied by sharp increase in air traffic
Airport Economic Regulatory Authority to foster healthy competition
NEW DELHI: With increasing competition in domestic skies, the profitability of the domestic airline industry is under tremendous pressure as almost all operators are reported to be making losses, according to the pre-budget Economic Survey 2007-08 presented in Parliament on Thursday.
“Given the intense competition among the airlines and the declining margins, a process of consolidation is perhaps inevitable.” The process has already commenced, and the recent mergers and acquisitions in the public and private sectors are expected to enable the airlines to increase revenues through synergies in operations and by ensuring optimal utilisation of resources in this capital-intensive sector.
After the merger of the national carriers Indian Airlines and Air India into the National Aviation Company of India Limited, the new brand entity Air India is expected to provide an integrated international and domestic footprint, which will enhance options to the customer, improve load factors and yields on commonly serviced routes and allow easy entry into one of the three global alliances.
Noting that the civil aviation sector underwent dramatic expansion during X Plan period, the Survey says the rapid growth of the economy, especially during the last four years, has been accompanied by a sharp increase in the volume of air traffic. Aircraft import
There are 14 scheduled operators having 334 aircraft. During 2007, they were given permission to import 72 aircraft. The Civil Aviation Ministry has given “in-principle” approval for the import of 496 aircraft. In the next five years, more than 250 aircraft are likely to be acquired by the scheduled operators. There are also 65 non-scheduled operators who have 201 aircraft in their inventory.
“The explosive growth in air traffic has made it imperative to rapidly expand infrastructure to ensure safe and efficient handling of air traffic,” says the Survey.
On upgrading the Chennai airport, it says an Inter-Ministerial Group has approved an action plan for expansion of the international and domestic terminal buildings to handle an additional 13 million passengers per annum and major airside works including extension of the secondary runway at a cost of Rs. 1,808 crore, for completion in June 2010.
The government has decided to set up an Airport Economic Regulatory Authority that will help in fostering healthy competition among airports by creating a level-playing field and encourage investment in airport facilities. Infrastructure
The Survey says the main objective of the aviation sector as set out in XI Plan is to provide world-class infrastructure and safe, reliable and affordable services. Apart from developing major and greenfield airports, modernisation of Air Traffic Management is envisaged.

http://www.hindu.com/2008/02/29/stories/2008022959501300.htm

Aviation sector records robust growth in 2007: Survey

Aviation sector records robust growth in 2007: Survey
Domestic passenger traffic up 32.51%
Air service outlook
The Government decides to set up an Airport Economic Regulatory Authority
AAI plans to modernise Kolkata, Chennai airports.
Also to undertake city side development of airports in 35 non-metros.
Our Bureau
New Delhi, Feb 28 The civil aviation sector continues to report robust growth in January-December 2007 with domestic passenger traffic recording a growth of 32.51 per cent. The Economic Survey 2007-08, tabled in Parliament on Thursday by the Union Finance Minister, Mr P. Chidambaram, showed that the international air traffic grew by 15.6 per cent during the same period.
The survey points out that the combined number of international and domestic passenger traffic has almost doubled between 2004 and 2007. Similarly, international air cargo reported a growth of 13 per cent while domestic air cargo sector grew by 9.8 per cent during April-October 2007.Financial health
Commenting on the financial health of the sector, the survey states that the process of consolidation has started and is likely to enable the airlines to increase their revenues through synergies in operations and also by ensuring optimal utilisation of resources in a capital intensive sector.
During the year, not only did the Government initiate the process of merging Air India and Indian, but the merger of Jet Airways and Air Sahara was also completed and Kingfisher Airlines acquired Air Deccan.
The Government also decided to set up an Airport Economic Regulatory Authority (AERA) which is to be an Appellate Tribunal to adjudicate any dispute between two and or more service providers or between a service provider and consumers. infrastructure development
Realising that infrastructure development is a key issue, Airports Authority of India (AAI) started the process of modernising Kolkata and Chennai airports. In Chennai, AAI proposes to construct an integrated passenger terminal capable of handling 20 million passengers annually at an estimated cost of Rs 1,942.51 crore by June 2010.
AAI also plans to undertake the city side development of airports in 35 non-metro cities and hopes to complete major works in seven cities including Tiruchi and Agatti during the current financial year.
The survey adds that the main objective of the sector during the Eleventh Plan period would be to provide safe, reliable and affordable air services so as to encourage growth in passenger and cargo traffic and air connectivity to remote and inaccessible parts of the country apart from providing world class infrastructure.

http://www.thehindubusinessline.com/2008/02/29/stories/2008022950380700.htm

AAI lines up Rs 12k-cr airport revamp

28-Feb-2008

NEW DELHI: The country’s aviation infrastructure will get a massive investment dose over the next five years. Airports Authority of India (AAI) has planned to set aside Rs 12,434 crore for the upgradation and modernisation process. For the three metro airports in Kolkata, Chennai and Trivandrum, AAI has earmarked 43% of its planned outlay, while the rest will go into upgrading other non-metro airports and modernising the existing aeronautical facilities.

Of the Rs 5,332.13 crore earmarked for the three metro airports, Chennai has got the highest share — Rs 2,462 crore — for revamping the existing airport while the Kolkata airport will be modernised with a total outlay of Rs 2,417 crore.

Another Rs 452 crore will be spent on the Trivandrum airport. AAI has floated tenders for the modernisation of these metro projects, which are likely to be at par with India’s busiest Mumbai and Delhi airports, which are currently being re-developed by major private players. Sources in AAI said the process to scale up two of India’s most profitable airports — Kolkata and Chennai — to world standards has already started with adequate funds put in place for the next five years. “A major portion of the funds will go into starting new facilities like integrated passenger terminals, constructing new runways and launching hi-tech communication services. These services will be developed to global standards and several foreign partners will be roped in by AAI for construction and on turn-key basis,” said an AAI official. It’s not just about new terminals and cargo facilities; AAI will be investing a substantial part of Rs 1,743 crore into modernisation of aeronautical communication systems at more than 125 airports managed by the authority. The outlay will be spent installing new communication navigational systems for air traffic control (ATC) in inland and oceanic areas using satellite mode of communication at these airports for faster transfer of aircraft and cargo. A part of the investment will also be made at the Delhi and Mumbai airports where AAI is providing ATC services. With the upgradation of infrastructure, AAI will be able to cater to passenger traffic of 10 crore passengers per year and will be capable of handling cargo traffic of over 50 lakh tonnes annually.