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January 2, 1999

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PM mulls airports regulator, new corporate projects

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Prime Minister A B Vajpayee has announced the setting up of a regulatory body to ensure transparent functioning of airports in future.

Inaugurating a Rs 320-million international terminal building at the Hindustan Aeronautics Limited airport near Bangalore on Friday, he said such a regulatory body was very much needed to facilitate speedy construction of world class airports.

Wherever necessary, the government would allow 100 per cent foreign equity in these projects, he added.

He said in future most of the airports would be built on the framework of corporatisation as international experience had shown that large sums were needed for building new airports.

Corporations could also run airports more efficiently by making best use of the available assets. The government had decided to corporatise Delhi, Bombay and Bangalore airports, he revealed.

Inclusion of Bangalore in this list showed the importance given by the government to the Bangalore airport which was one of the best in the country.

Explaining difficulties in clearing new airport projects and upgradation of existing airports, he said even if clearance was given, buidling new airports would take a few years.

Considering all these aspects, the government had also decided to upgrade a few existing airports to international standards.

Airports in Goa, Amritsar, Gujarat, Bombay, Delhi and Bangalore would be covered in this phase and more airports would be covered in stages, he added.

Vajpayee said the task force set up on infrastructure had been looking into various aspects of forward looking policy of airports and it had already submitted an interim report. Based on the recommendations, new airports would be created with a proper planning keeping in view future projection of traffic.

He said air travel was critical to India's future economic growth. No country could compete internationally without proper all-weather airports, he felt.

He said the new terminal would ensure international prominence for Bangalore. For too long, the need to have such a facility was felt and the Airports Authority of India had rightly set up the facility in Bangalore to facilitate growth of industry, he added.

Civil Aviation Minister Ananth Kumar said he and Karnataka Chief Minister J H Patel would soon invite industrialist Ratan Tata for talks on the proposed international airport at Devanahalli to resolve pending issues concerning the project.

He announced that a direct flight between Bangalore and New York via London would commence from January 23. Another direct flight to Bangkok would commence during February first week. A direct flight between Lucknow and Sharjah would also begin its operation from February 1, he added.

Karnataka Governor Khursheed Alam Khan stressed the need to have airports of international standards to ensure that tourists made India their destination permanently.

Union Commerce Minister Ramakrishna Hegde suggested to Vajpayee to consider the new terminal as temporary facility and ensure that the international airport project at Devanahalli was implemented as Bangalore had become the focal point for the south India.

Patel urged Vajpayee to clear the international project at the earliest and requested Hegde to pursue the matter.

UNI

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