In what is sure to be a shock, to both the BIAL and HIAL consortia, the Deccan Chronicle reports, the parliamentary standing committee on transport, tourism and culture, on Thursday October 23, recommended immediate withdrawal of user development fees (UDF) being charged by Hyderabad and Bengaluru airports.
It said the private operators had invested only Rs 330 crore and Rs 240 crore at Hyderabad and Bangalore respectively to develop the airports. The rest of the amount came from the AAI, state governments and through debt from financial institutions.
Observing that the government’s policy was to make air travel more affordable, the committee said the UDF imposed on passengers “may be withdrawn immediately and no more UDF may be imposed on passengers in any of the airports.”
The committee has also recommended that the HAL airport in Bangalore, and the Begumpet airport in Hyderabad be used for short-haul domestic flights.
The committee, headed by the CPI(M) leader, Mr Sitaram Yechury, said any future greenfield or brownfield airports should be developed with the Airports Authority of India (AAI) having a majority stake in a joint venture.
What impact this recommendation will have on the pending UDF requests of the consortia at Delhi and Mumbai is also to be considered.
[PS: cross posted from My Aviation Blog]
ಪ್ರತಿಕ್ರಿಯೆಗಳು
A historic day
Wow - and everyone gets away
Only a recommendation
Fuel surcharge
Dance/Drama and the airport
I agree
User Interaction Designer
Bangalore
And the talk of improving connectivity to HAL airport
A JV of AAI+BIAL for HAL terminal ?
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Regards
Devesh R. Agarwal
Visit my aviation blog at http://aviation.deveshagarwal.com
Regards
Devesh
Bangalore Aviation
Enjoy life, destroy FUD
Air Traffic Down
BIAL will not accept "no UDF"
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Regards
Devesh R. Agarwal
Visit my aviation blog at http://aviation.deveshagarwal.com
Regards
Devesh
Bangalore Aviation
Enjoy life, destroy FUD
"Other" view
I am going to play the Devil's advocate - my apologies in advance if I seem to tread on some toes. An earlier blog (referred to as b-old) is a good reference point. Is Sitaram Yechury qualified to comment on aviation/infrastructure matters? This is similar to the CAG coming down heavily on the long-gestation defence projects or the more hilarious (and completely shameless) ministers from our esteemed state qualifying that the airport is inadequate (may be because they wanted a junket and VIP facilities). One wonders why they didn't give "constructive" suggestions at the planning stage? Why isn't anybody here raising a hue on cry on money spent on VIP facilities? Who pays for it and why is it "necessary"? Can't they use the "regular" business lounge?
Devesh argues in b-old and elsewhere that "the promoters refused to pump in a measly Rs. 200 Cr. additional, to ensure the required corrective action." and that the terminal had to be increased for the higher passenger load. In the same blog (or here) and here there is clear indication that the passenger traffic dropped - so is it now time to somehow "shrink" the airport? If the airport was bigger, there would have been under-utilization and consequent loss. Incredibly, Devesh still says "Given this scenario, the financial viability of both HAL and BIAL operating together needs to be examined. Both airports will experience insufficient traffic and will be hurt financially." Sir - is it desirable for two airports to be under loss? Isn't it contradictory to still want the HAL airport to open?
mcadambi said that "They consider Bangaloreans cheapskates and fools by claiming to have invested in "Rs. 2500 Crores" in a world class airport!" In b-old, the cost was shown in a pie chart - if the govt./public owns minority stake, why will they repay the majority of the loan back? In other words, the loan+interest will be paid by the private parties and hence they have "invested" indirectly. World over private companies tend to borrow for large-amount projects.
silkboard said "This has been one stinking project ..." - how about the old HAL airport - how much did it work through "regular tendering and contracting process"? Is there one good (read world-class) AAI-run airport in India? When publicly-traded corporations (with shareholders and/or public's money) are not held accountable to adhere to government's regular tendering and contracting process why should ppp (w/ minority stake of govt./public) be subject to the same? The framework agreement is clearly mentioned under BIAL -> About BIAL -> "Legal Framework". If anything, the govt. has to be petitioned under RTI to come clean on the concessions offered. Again, to attract private investment offering concessions is pretty normal - private companies never invest with charity or larger public good in mind.
idontspam talks about reduction in fuel - this article should throw light on why fuel charges are still high ("ATF prices in India for domestic carriers are today 60 to 70 per cent higher than international ATF prices.") I have seen a dozen or so international/big airports around the world - the old HAL airport was a "matchbox" that was only slightly better than our railway stations and bus stands.
The new airport has seen more brickbats than praises - people have been blaming the airport authorities for toilet paper being askew (how about people's civic sense?), a little more time spent on connecting the aerobridge to the plane (the operators need to learn and will take time) and so on. In fact it is very commendable that the airport administration took the initiative to build the trumpet interchange for public convenience. Also, it is an engineering feat to build such a large, complicated and logistically-demanding project in under three years. It is difficult and time-consuming (read expensive) to make changes as and when demanded.
An excellent article talks about the thought-process behind the project. As for the rest of it, consider it like a new home - the decorations and improvements can always be added once the basic and necessary structure is sound and in place. Also, a clearer picture about the capacity (or lack of it) and serious shortcomings at the new airport will emerge after sustained usage of at least 1-2 years. Before the public throw out criticisms they need to understand that people at the helm of the airport have had lots of experience in managing airports; also, the public should dig a little deeper and educate themselves a little more so that the criticisms carry more weight. I am honestly proud that my home city has one of the best airports in India.
n sir, pardon me
... for I am not with Devesh, Mcad etc in supporting reopening of HAL airport. Standard points there
Anyway, don't want to repeat all that stuff again. But you seem to have a single lense view - if one says anything anti-BIAL, he/she must be wanting HAL to reopen. Large PPP projects with significant public holding (4000 acres of land, plus all the cost of building connectivity - these two should count for something) need to have some norms of transparency to make sure the PPPs don't get used to award most of the work to some select minister's or babu's extended family, with deals being done at above market prices to inflate project costs (whats a kickback?). Who is asking for the sarkaari tendering process here, just some transparency - clear accounts and details of all spending done during build phase of the project. And last, n sir, stinking project is different from stinking airport. I quite like it, not splendid, but certainly better than good enough.
My point still stands
No plan to reopen HAL airport: Patel
Why do we need to reopen HAL?
Why not get some more audits while we are at it...
User Interaction Designer
Bangalore
Bayern, you should apologise
The heading of this article posted by Devesh at Praja is misleading which makes one believe that HAL will be reopened, but according to Deccan Hearld, the title of the original article is highlighted in bold as "No plan to reopen HAL airport". I guess this was another propaganda stunt from Mr.Devesh to mislead public
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My post was accurate and quotes newspapers on what the Standing Committee has recommended in its report. I do not appreciate, and I do not believe it is an acceptable behaviour on Praja to call someone a liar without backing up your statement. I challenge you to tell me what is inaccurate in my post, failing which, have the courage to apologise. You have posted another article which quotes Praful Patel, and I respect your post. Just because you have made your post, does not give me the right to call you by some other equally inflammatory or derogatory terms as you have done to me.
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Devesh R. Agarwal
Visit my aviation blog at http://aviation.deveshagarwal.com
Regards
Devesh
Bangalore Aviation
Enjoy life, destroy FUD
apologise for what?
HAL opening is much desired