Business & Economy

Airport functions likely
to be carved up 

What is India News Service, Monday, 13 December 2004, 2000 hrs IST

Even as the government pushes plans to privatise Delhi and Mumbai airports, a new move is on to carve up the two aviation hubs into the cityside and airside.

The proposal will allow the Airports Authority of India (AAI) to modernise and manage the airside part of these two gateway airports, while privatising the cityside.

Under the plan, which has been initiated keeping in mind the political objections and the time being taken in clearing the privatisation bid by top officials, runways, parking bays, air traffic controllers (ATCs), and security will be part of the airside. The leaving malls, passenger entry and baggage handling on the cityside will be privatised.

Officials say the larger part of the income for any airport comes from parking slots given to global airlines. In revenue terms, an airport typically earns about 60 per cent of its revenues from the airside and 40 per cent from the cityside.

Cityside facilities are more profitable and the capital investments required in it are far less. \93This should make taking over cityside more lucrative for private players,\94 officials said.

Legal separation no solution to Reliance row, say experts: Legal separation cannot be the solution to the ownership dispute plaguing the Rs 90,000-crore Reliance Industries Ltd (RIL) because of the multi-holding entities including waves of investment firms floated by the late Dhirubhai Ambani during the foundation and public listing of the Reliance empire, according to legal experts here.

REL seeks RIL reply: Stepping up its pressure on the other side, Anil Ambani camp on Sunday released a letter written by two independent directors of Reliance Energy Limited headed by him raising a number of issues including availability, quantum and pricing of gas for the power project in Dadri and about the promised investment from Reliance Industries Limited headed by Mukesh Ambani. 

Crude reserve cost to go up: Soaring international crude prices have led to a sharp increase in the projected cost for creating the country\92s strategic infrastructure. 

Centre biased against BJP States, says Jaswant: Deputy leader of Rajya Sabha and former Finance Minister Jaswant Singh has accused the Centre of neglecting internal security and meting out step-motherly treatment to BJP-ruled States. 

Per capita productivity up 40% in a decade: The way to fight declining employment is to step up investment in urban and rural infrastructure and focus on labour incentive sectors and technologies. Self-employment is another key which can unlock doors to prosperity in Asia. These were some of the messages that emerged from the two-day sub-regional workshop on \93The employment challenge in South Asia\94 which concluded on Saturday.

STAR calls lawyers, Sony non-committal: The "must provide" clause in Trai's interconnect regulation has panicked leading broadcasters with Rupert Murdoch-controlled STAR India rushing to take legal advice to "safeguard interests" and Sony India still remaining non-commital.

Ford prices set to zoom: Ford Motor would raise prices in January to meet rising input costs. 

PSU oil marketing firms charging 30% higher parity: Public sector oil marketing companies in the country have been charging up to a massive  
30 per cent higher parity on the international prices while fixing the ex-storage prices, resulting in much higher retail prices of all the 
petroleum products except LPG and kerosene for which the government is fixing the prices.

IBM inks new JV with Chinese computer giant: US Information Technology giant IBM has inked a new joint venture with Chinese firm China 
Great Wall Computer Corp.

Allow foreign airlines to pick 49% stake, says CII: Going against the prevailing stance of the government, the Confederation of Indian Industry  
(CII) has recommended that foreign airlines be allowed to pick 49 per cent stake in domestic carriers saying it would help the aviation sector gain  
sophisticated technology and best expertise.  

Revival hopes give Bata stock a leg-up: Bata India, having pruned its employee strength by 1,200 through a voluntary retirement scheme, is 
hoping for a turnaround. 


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