CELEBRATING YEARS OF SERVICE TO THE NATION (1995 - 2020) ¼fefujRu Js.kh - I lkoZtfud {ks= dk miØe½ (A Miniratna Category-I Public Sector Enterprise) th Annual Report 2019-20 137 International Domestic Civil Enclaves at Customs Airports 23Airports 81Airports 23Defence Airfields10Airports Shri Narendra Modi Hon'ble Prime Minister of India Shri Hardeep Singh Puri Shri Pradeep Singh Kharola Shri Arvind Singh, IAS Hon'ble Minister of State for Civil Aviation Secretary, Ministry of Civil Aviation Chairman, AAI CELEBRATING YEARS OF SERVICE TO THE NATION (1995 - 2020) CONTENTS Particulars Page No. About AAI 03 Board Members, CVO and KMP 04 Highlights 2019-20 10 Board’s Report 16 - Corporate Governance Report 26 - Management Discussion & Analysis (MD&A) 30 - Details of Capital Schemes (Region-wise) 76 - Annual Report on CSR Activities 88 - Sustainability Report 108 Financial Statements of AAI & Auditor’s Report thereon 113 Financial Statements of CHIAL & Auditor’s Report thereon 159 Financial Statements of AAICLAS Co. Ltd. & Auditor’s Report thereon 205 Chennai Airport About AAI Airports Authority of India (AAI) came into existence on 1st April 1995. AAI has been constituted as a statutory authority under the Airports Authority of India Act, 1994. It has been created by merging the erstwhile International Airports Authority and National Airports Authority with a view to accelerate the integrated development, expansion and modernization of the air traffic services, passenger terminals, operational areas and cargo facilities at the airports in the country. Main Functions of AAI • Control and management of the Indian airspace (excluding special user air space) extending beyond the territorial limits of the country, as accepted by ICAO. • Provision of Communication, Navigational and Surveillance Aids. • Expansion and strengthening of operational areas viz. Runways, Aprons, Taxiways etc. and provision of ground-based landing and movement control aids for aircrafts & vehicular traffic in operational area. • Design, Development, Operation and Maintenance of passenger terminals. • Development and Management of cargo terminals at international and domestic airports. • Provision of passenger facilities and information systems in the passenger terminals. Mission “TO BE THE FOUNDATION of an enduring Indian aviation network, providing high quality, safe and customer-oriented airport and air navigation services, thereby acting as a catalyst for economic growth in the areas we serve.” Vision AAI’s vision till 2026 is: • to be the pre-eminent Air Navigation Service provider with Global Recognition; • to adopt state of art technology to drive safe navigation in the Indian airspace; • to maintain highest standards of excellence in providing modern, sustainable and robust airport infrastructure; • support improving air connectivity at unserved and under-served airports; • have an effective organization equipped to face the emerging challenges from the exponential air traffic growth; • focus on profitable operations at Major airports through continuing efforts on cost reduction and enhancing non-aeronautical revenue. 137 International Domestic Civil Enclaves at Customs Airports 23Airports 81Airports 23Defence Airfields10Airports Annual Report 2019-20 Board Members and Key Managerial Personnel CHAIRMAN Shri Arvind Singh, IAS Dr. Guruprasad Mohapatra, IAS Chairman, AAI Chairman, AAI (w.e.f. 06.11.2019) (upto 31.07.2019) NON-OFFICIAL MEMBERS (Government Nominees) Shri Arun Kumar, IAS Shri B.S. Bhullar, IAS Director General of Civil Aviation & Director General of Civil Aviation & Ex-Officio Member (w.e.f. 31.05.2019) Ex-Officio Member (upto 31.05.2019) Ms. Rubina Ali Shri Vimalendra Anand Patwardhan Shri Praveen Garg, IAS Joint Secy., Ministry of Civil Aviation Joint Secy. & Financial Advisor, Additional Secy. & Financial Advisor, Ministry of Civil Aviation Ministry of Civil Aviation (w.e.f. 13.02.2020) (from 20.12.2019 to 13.02.2020) NON-OFFICIAL MEMBERS (Independent) Dr. (Ms.) Tuktuk Ghosh Kumar, ACM (Retd.) Dr. Venkateswarlu Kasam Shri Govindarajan Sekar IAS (Retd.) Fali Homi Major Non-Official Member (Independent) Non-Official Member (Independent) Non-Official Member (Independent) Non-Official Member (Independent) (upto 06.02.2020) (upto 06.02.2020) 04 FUNCTIONAL MEMBERS Shri Anuj Aggarwal Shri I.N. Murthy Shri A. K. Pathak Member (Human Resources) Member (Operations) Member (Planning) Shri Vineet Gulati Shri K. Vinayak Rao, IRAS Shri S. Suresh Member (Air Navigation Services) Member (Finance) Member (Finance) - (upto 25.09.2019) (w.e.f. 13.05.2020) CHIEF VIGILANCE OFFICER Shri Amal Garg, IRS Ms. Arti Bhatnagar, IDAS Shri R.S. Bhatti, IPS Chief Vigilance Officer Chief Vigilance Officer Chief Vigilance Officer (w.e.f. 21.10.2020) (from 23.03.2020 to 19.09.2020) (upto 31.01.2020) KEY MANAGERIAL PERSONNEL Shri Dharmendra Bhojwani Shri Pankaj Jain Ms. R. Tulasi Mahalakshmi ED (Finance) ED (Finance) Company Secretary (w.e.f. 01.07.2020) (upto 30.06.2020) 05 Annual Report 2019-20 Brief Prole of Board Members CHAIRMAN Shri Arvind Singh (IAS; MH:88) took over the charge as Chairman, AAI on 6th November 2019. Prior to this, he was Additional Chief Secretary (Energy) in Government of Maharashtra. He has also worked as Chairman and Managing Director of Maharashtra State Power Generation Company Ltd. (MSPGCL) and the Maharashtra State Electricity Transmission Company Ltd. (MSETCL). Shri Singh, joined the Indian Administrative Service in 1988 after acquiring Bachelor’s and Master’s degrees in Economics from St. Stephen’s College, Delhi and the Delhi School of Economics, Delhi respectively. His initial assignments were as Assistant Collector at Aurangabad and as Chief Executive Officer of Aurangabad and Nagpur Zilla Parishads. After a stint in the Chief Secretary’s office at Mumbai, he moved to Kolhapur as District Collector. Moving to the Centre in 2001, he worked in various ministries including Commerce and Shipping and as Private Secretary to the Minister of Agriculture. He served at the Embassy of India, Tokyo as Minister (Economic & Commerce) between 2014-17. Shri Singh has attended mid-career training courses at the Graduate Institute, Geneva and Harvard University and is fluent in English, Hindi and Marathi.. NON-OFFICIAL MEMBERS (GOVERNMENT NOMINEES) Sh. Arun Kumar, a 1989 batch IAS Officer from Haryana Cadre and a Maths Graduate,is the Chief of Directorate General of Civil Aviation. For about 22 years, he served in the Northern Indian State of Haryana in various capacities such as Managing Director - Power Distribution and Transmission Utilities, as Head of State Tax Administration, as Chief Executive Officer of the State Transport Undertaking, as Director of Industries and Mines and as Director of Environment and Member Secretary in State Pollution Control Board. He has held the position of Deputy Commissioner in the Union Territory of Chandigarh and of District Collector of Rohtak, Jhajjar and Faridabad in the State of Haryana. For about almost six and half years, he has been with the Ministry of Civil Aviation.Being the Joint Secretaryand then as Additional Secretary in the Ministry, he looked after the work of Airports, Airlines, DGCA, Bilateral and Parliamentary Affairs. While in charge of Bilaterals, he was the Leader of Indian delegation in multiple Air Services Negotiations and has signed about 40 Agreements/MoU on behalf of India, with various countries.Later, in June 2019, he was given charge as the Director General of Civil Aviation. He has attended many training programmes in India and Abroad and also attended many short-term professional courses in Indian Institute of Management, National Law School, IATA and Cambridge University. Sh. Vimalendra Anand Patwardhan is a Commerce Graduate who joined the Indian Audit & Accounts Services in 1996. While working for about 25 years in various capacities, he has acquired an extensive knowledge and insight into the working of PSUs, Defence Sector and the Government. Currently, as Joint Secretary & Financial Advisor in the Ministry of Civil Aviation and Ministry of New & Renewable Energy, he is primarily responsible for finance advice. Apart from performing audit and finance functions in various organisations under the Government, he has also extensive experience of audit of international organisations such as WHO, WTO, FAO, etc. 06 Brief Prole of Board Members Ms. Rubina Ali is a Post Graduate in History. She cleared Civil Services Examination - 1991 batch Central Secretariat Services (CSS). Since then, she has held different positions in various departments including Ministry of Finance, Ministry of Culture and Ministry of Mines and presently, she is working as Joint Secretary in Ministry of Civil Aviation. FUNCTIONAL MEMBERS Sh. Anuj Aggarwal is an Engineering Graduate from BITS Pilani. Before taking over the charge as Member (HR) in December 2014, he was Executive Director in Key Infrastructure Development (KID) Cell of AAI. During his association with AAI starting from 1989, he has held different positions and acquired vast experience in the field of Planning, Admin, Engg., Operations, CSR and Human Resources Management. Shri Aggarwal is a team player with the ability to handle large taskforce in a disciplined & organized manner as well as monitoring and motivating teams in optimizing performance levels. Shri Indrakanti Narasimha Murthy is a Post Graduate in Physics (Electronics) and is associated with AAI since 1985. Sh. Murthy has more than 35 years of experience in aviation sector and has held