TN demands share of revenue from AAI’s airports privatisation drive

Tamil Nadu has demanded a share in the revenue realised by the Centre’s airports privatisation drive.

According to the policy note presented by Industries Minister Thangam Thennarasu to the assembly on Tuesday, the Airports Authority of India (AAI) is pursuing a policy of airports privatisation.

“Therefore, a decision has been taken that in the event, the state government acquires and transfers the lands to Airports Authority of India free of cost and the Airports Authority of India or Government of India transfer the assets to a third party, the value realised / revenue accrued thereby, must be proportionately shared with the state government reflecting the huge investment in land being made by the state government,” the policy note states.

According to it, TN has decided that at an appropriate stage, it has to be ensured that the value of the lands is converted as equity of the state government in an ‘Airport Project Special Purpose Vehicle’ or an appropriate revenue-sharing arrangement proportionate to investment is arrived at before any asset transfer takes place to a private party.

The state government said as per a decision taken in 2007 to construct / expand airports, it is acquiring lands and handing over the same free of cost, without any encumbrance to AAI.

“In the present projects, the land cost forms the major share of the overall project cost,” the note said.

Meanwhile, the government has said the AAI has requested for 64.57 acre of patta land and alienation of 11.58 acres of poramboke land for Chennai Airport.

“Out of this, 30.57 acres patta land will be handed over to Chennai Airport before end of April 2022. Alienation proposals are under process in various stages. Online application for transfer of 16.89 acres of defence lands to Airports Authority of India have been submitted and orders are awaited from Ministry of Defence, Government of India,” the government said.