Union govt to lease 8 to 9 more airports: Aviation Minister

New Delhi: The Union government is about to lease eight to nine more airports to private players. Civil Aviation Minister Jyotiraditya Scindia told IANS. This one among many plans the aviation ministry is considering to make the system more organised and equally dynamic, IANS reported.

He said, "Let me categorically insist, as I did in the Parliament the other day, that these airports are not being privatised, they are being leased for a 50-year period. Not only are they going to generate revenue for the government this way, but they will guarantee to upgrade of these airports."

Scindia said, "I think this is the best model going forward. You will hear of us calling for bids in the next round shortly. On charges of privatisation, let me tell you that leasing will actually garner revenues of Rs 904 crore per year for AAI as lease fee for the first round of six airports, and as much as Rs 2,322 crore has already reached government accounts in this case. We expect a similar windfall when we do the next round of leasing."

Further, he said that he had requested state governments to reduce VAT on aviation turbine fuel and added that 12 states and a Union Territory gave positive responses.

"Andhra Pradesh and Kerala have reduced VAT, and there is a 15 per cent bump up in connectivity in a quarter. J&K has reduced VAT from 26 per cent to 1 per cent, and the number of aircraft landing there and refuelling has gone up by 360 per cent. This reform measure will only widen and deepen the aviation sector in India," Scindia claimed.