GOVERNMENT OF INDIA

Ministry of Civil Aviation

RAJYASABHA
UNSTARRED QUESTION NO: 20
TO BE ANSWERED ON 23/02/2010
Modernization Cost Of Airports

20.     SHRI RAJEEV CHANDRASEKHAR:
Will the Minister of CIVIL AVIATION be pleased to state:
(3) the details of the initial cost estimates for airport modernization programmes in the country;
(b) whether it is a fact that the modernization costs of Delhi and Mumbai airports is set to almost double their initial estimates;
(c) if SO, the reasons therefor; and
(d) how does Government proposes to address the issue of the increased burden on consumers due to this escalation in costs?

ANSWER
MINISTER OF STATE (INDEPENDENT CHARGE) OF THE MINISTRY OF CIVIL A VIA TION ( SHRI PRAFUL PATEL)

(a): The initial cost estimates for airport modernisation programmes viz. restructuring & modernisation of Delhi, Mumbai, Chennai and Kolkata airports; construction of new greenfield airports at Bangalore, Hyderabad, Goa, Pune, Navi Mumbai, Nagpur (Hub) & Greater Noida; upgradation of 25 selected airports and modernisation/improvement of 55 airports as per the Report of the Committee on Infrastructure submitted in the year 2006 was Rs.40,OOO crores.
,
(b) & (c): The specific project details were not fixed, at the time of bidding, for airports at Delhi and Mumbai. However, in accordance with the initial development plan as submitted by the selected bidders at the time of bid, the estimated project cost was Rs.5976 crores and Rs.3287 crores for Mumbai and Delhi airports respectively. The enhancement in the project cost is on account of the increase in the scope of work.
(d): The Airport Charges (Aeronautical) are subject to regulation by the Airports Economic Regulatory Authority of India (AERA) after detailed review involving consultations with the stakeholders.