Airport developers face runway congestion

NEW DELHI: A Greenfield Airport policy is still some time away from being formulated. But with members of a Parliamentary Consultative Committee seeking multiple airports in metropolitan cities, at least three airports (at Delhi, Hyderabad and Bangalore) appear to have been caught in a dilemma.

All the three airports are being developed under the public-private partnership model and would stand to lose revenue if the parliament members’ demand of multiple airports is heeded while formulating the new policy.

As per existing policy (Airport Infrastructure), a greenfield airport is not allowed to be developed within 150 km of an existing airport and then also only where an existing airport is unable to meet the projected requirements of traffic or a new focal point of traffic emerges with sufficient viability.

“It can be allowed both as a replacement for an existing airport or for simultaneous operation but this aspect will have to be clearly spelt out in the notice inviting tenders,” the policy states.

But if the government allows the proposed Taj International Airport at Zevar (Greater Noida) to come up - Zevar is about 70 km from DIAL - then there appears to be a contravention of the OMDA (Operation, Management and Development Agreement) Airports

Authority of India signed with GMR for Delhi International Airport Ltd (DIAL).

The OMDA, while not barring the creation of a new airport, allows GMR the first right of refusal in bidding for the new one in case its bid is within 10% of the highest bidder.

GMR is believed to have pointed out to the government that at the time of signing the OMDA, there was no mention of a second airport coming up in close vicinity to DIAL otherwise bidders would have taken this risk factor into account before placing their respective bids.

Even the Hyderabad and Bangalore airports are in a similar situation. The respective agreements AAI has signed with the developers of each also have the 150 km exclusivity built in, for the next 25 years.

Both these airports are expected to become operational by the middle of the next year.

Civil aviation ministry officials pointed out that they would keep these points in mind while formulating the Greenfield Airport policy. “But why should infrastructure growth be stopped because the interests of some private developers are getting hurt? What about second airports in places where AAI is already operating an airport, does not the same criterion apply then……we will take a realistic view.”

They also said cities such as London and New York  successfully operate multiple airports to support the MPs’ view that the big Indian metros should also have more than one airport.

The Committee on Infrastructure (CoI) headed by the Prime Minister has already referred the draft Greenfield Airport Policy to a committee comprising finance and civil aviation ministers, after differences cropped up within the Cabinet on the multiple airports issue.