Karnataka government to control and run new minor airports

15 Jun 2023 CW Team

The government is required to pay for land acquisition and construction as well as to provide "all basic facilities," according to Infrastructure Development Minister MB Patil, but "it neither has a say in operations nor is there any revenue sharing mechanism with AAI."

Karnataka is home to eight operational airports. The Shivamogga airport has yet to start performing paid services. Tenders have been floated for one in Raichur, and two more are being built—one each in Hassan and Vijayapura. There are two more airports being studied for feasibility. Once an airport is turned over to AAI, according to officials, the decision is final and cannot be "reconsidered" at a later time.

The government intends to transfer management of future airports to the department of large and medium industries' Karnataka State Industrial and Infrastructure Development Corporation (KSIIDC).

According to the minister, there are examples of governments running airports in other states and in Karnataka as well. He used the Karnataka State Industrial and Infrastructure Corporation (KSIIDC), a state government organization, as an example. It manages the Shivamogga airport.

“In Maharashtra, the Shirdi airport is run by the state government, and even in Rajasthan, there are airports that are run by the Rajasthan government. We also would like to have a hold over our airports,” Patil said.

Officials claimed that the choice was made after the state government was informed that it would be responsible for all costs and losses. "For instance, consider Mysuru Airport. The state government will be responsible for paying for any future land acquisition for growth, according to a stipulation in the deal with AAI. We are purchasing land today for Rs 3.2 billion, but no money is coming in, according to a top government official.

Patil further emphasized that although the Kalaburagi airport was constructed at a cost of Rs 10 billion, the state has no control over how it is administered.

Officials said owning future airports made better “business sense”. “If the government feels it cannot run the airport, it can either hand it over to AAI at that point or put it up for sale to private parties,” an official said. “The value of capital assets would have increased by then, and the state government can recover whatever had been spent and perhaps even more. ”

The DGCA and the civil aviation ministry will need to provide their consent for the government to own and operate these airports if it decides to do so.

With the Union government, according to Patil, the problem would be discussed. “The directorate of civil aviation has granted approval for commercial operations at Shivamogga airport,” Patil said.

“Likewise, the government intends to operate and maintain Vijayapura and Hassan airports which are under construction. There will be financial benefits to the state and local benefits as well if we run these airports ourselves. ”

The Karnataka government plans to control and run all new minor airports in the state rather than turning over all existing airports to Airports Authority of India (AAI), claiming that doing so would be better business sense. The government is required to pay for land acquisition and construction as well as to provide all basic facilities, according to Infrastructure Development Minister MB Patil, but it neither has a say in operations nor is there any revenue sharing mechanism with AAI. Karnataka is home to eight operational airports. The Shivamogga airport has yet to start performing paid services. Tenders have been floated for one in Raichur, and two more are being built—one each in Hassan and Vijayapura. There are two more airports being studied for feasibility. Once an airport is turned over to AAI, according to officials, the decision is final and cannot be reconsidered at a later time. The government intends to transfer management of future airports to the department of large and medium industries' Karnataka State Industrial and Infrastructure Development Corporation (KSIIDC). According to the minister, there are examples of governments running airports in other states and in Karnataka as well. He used the Karnataka State Industrial and Infrastructure Corporation (KSIIDC), a state government organization, as an example. It manages the Shivamogga airport. “In Maharashtra, the Shirdi airport is run by the state government, and even in Rajasthan, there are airports that are run by the Rajasthan government. We also would like to have a hold over our airports,” Patil said. Officials claimed that the choice was made after the state government was informed that it would be responsible for all costs and losses. For instance, consider Mysuru Airport. The state government will be responsible for paying for any future land acquisition for growth, according to a stipulation in the deal with AAI. We are purchasing land today for Rs 3.2 billion, but no money is coming in, according to a top government official. Patil further emphasized that although the Kalaburagi airport was constructed at a cost of Rs 10 billion, the state has no control over how it is administered. Officials said owning future airports made better “business sense”. “If the government feels it cannot run the airport, it can either hand it over to AAI at that point or put it up for sale to private parties,” an official said. “The value of capital assets would have increased by then, and the state government can recover whatever had been spent and perhaps even more. ” The DGCA and the civil aviation ministry will need to provide their consent for the government to own and operate these airports if it decides to do so. With the Union government, according to Patil, the problem would be discussed. “The directorate of civil aviation has granted approval for commercial operations at Shivamogga airport,” Patil said. “Likewise, the government intends to operate and maintain Vijayapura and Hassan airports which are under construction. There will be financial benefits to the state and local benefits as well if we run these airports ourselves. ” See also: Shivamogga Airport to begin flight operationsMangaluru airport completes 2.4km runway recarpeting ahead of schedule