No proposal to privatize Air India and Airport Authority: Patel

New Delhi, July 9 (ANI): Civil Aviation Minister Praful Patel ruled out disinvestments of Air India (AI) and Airport Authority of India (AAI).

Replying to a question in the Lok Sabha, Patel said there is no such proposal before the government and also said that the government is not considering Initial Public Offer (IPO) at this stage.

For the members demand to roll back the development fee collected by the privatized airports, Patel said the government had constituted Airport Economic Regulatory Authority (AERA) entrusted with the responsibility of deciding on the issue.

Members suggested that partners should develop airports from their own funds and once they complete the works, they could charge development fees.

The Delhi and Mumbai airports were charging development fees from passengers against whom the Resources of Aviation Redressal

Association (ROAR) had protested, but there was no protest in this regard from International Air Transport Authority (IATA). ROAR has filed a writ petition in the Delhi High Court on the matter, Patel informed the house.

Patel informed that out of the total cost of around Rs 9,000 crore, about Rs 5,500 crore has already been spent and the AAI had taken up development work on Chennai and Kolkata airports.

Replying to another question, Patel said there was no shortage of pilots in the country and the Indira Gandhi Rashtriya Uran Academy (IGRUA) has been modernized to increase its annual capacity from 40 to 100 candidates.

A world-class flying training institute at Gondia in Maharashtra has been set up with capacity to train 110 candidates annually, including 10 for Commercial Helicopter Pilot, Patel informed the house.

Patel said the government was supporting other flying clubs by providing trainer aircraft through Directorate General of Civil Aviation (DGCA) and Aero-Club of India (ACI).

Patel assured the house that congestion in air traffic in Delhi would be considerably reduced and the taxiing time for aircraft brought down once the new terminal under construction became operational in 2010. (ANI)