REPORT NO. 203 PARLIAMENT OF INDIA RAJYA SABHA DEPARTMENT-RELATED PARLIAMENTARY STANDING COMMITTEE ON TRANSPORT, TOURISM AND CULTURE TWO HUNDRED THIRD REPORT Privatization of Services at Airports (Presented to the Hon’ble Chairman, Rajya Sabha on 20th November, 2013) (Presented to the Hon’ble Speaker, Lok Sabha on 20th November, 2013) (Presented to the Rajya Sabha on 17th December, 2013) (Laid on the Table of Lok Sabha on 17th December, 2013) Rajya Sabha Secretariat, New Delhi November, 2013/Kartika, 1935 (Saka) Website: http://rajyasabha.nic.in E-mail: [email protected] 33 Hindi version of this publication is also available PARLIAMENT OF INDIA RAJYA SABHA DEPARTMENT-RELATED PARLIAMENTARY STANDING COMMITTEE ON TRANSPORT, TOURISM AND CULTURE TWO HUNDRED THIRD REPORT Privatization of Services at Airports (Presented to the Hon'ble Chairman, Rajya Sabha on 20th November, 2013) (Presented to the Hon'ble Speaker, Lok Sabha on 20th November, 2013) (Presented to the Rajya Sabha on 17th December, 2013) (Laid on the Table of Lok Sabha on 17th December, 2013) Rajya Sabha Secretariat, New Delhi November, 2013/Kartika, 1935 (Saka) CONTENTS PAGES 1. COMPOSITION OF THE COMMITTEE ..................................................................................... (i)-(ii) 2. INTRODUCTION ..................................................................................................................... (iii) 3. LIST OF ABBREVIATIONS ..................................................................................................... (iv) 4. REPORT OF THE COMMITTEE ............................................................................................. 1—8 5. MINUTES .............................................................................................................................. 9—16 6. LIST OF REPORTS ............................................................................................................... 17—32 COMPOSITION OF THE DEPARTMENT-RELATED PARLIAMENTARY STANDING COMMITTEE ON TRANSPORT, TOURISM AND CULTURE (2011-12) 1. Shri Sitaram Yechury — Chairman RAJYA SABHA 2. Shri Satish Sharma 3. Prof. Alka Balram Kshatriya 4. Shri V. Hanumantha Rao 5. Shrimati Bimla Kashyap Sood 6. Shri Aayanur Manjunatha 7. Shri Narendra Kumar Kashyap 8. Shrimati Vasanthi Stanley 9. Shri Kunal Kumar Ghosh ✻10. Shri Shashi Bhusan Behera LOK SABHA 11. Yogi Adityanath 12. Shri Ghanshyam Anuragi 13. Shri Subrata Bakshi 14. Shrimati Tabassum Hasan 15. Dr. Mahesh Joshi 16. Shri M. Krishnaswamy 17. Shri G.V. Harsha Kumar @18. Shrimati Ranee Narah 19. Shri Prabodh Panda 20. Shri Deoraj Singh Patel 21. Shri Adhalrao Shivaji Patil 22. Shri Nilesh N. Rane @23. Shri K.J. S.P. Reddy 24. Shri Modugula Venugopala Reddy 25. Shri Dushyant Singh 26. Shri Rakesh Singh 27. Shri Shatrughan Sinha 28. Shri K. Sudhakaran 29. Shri Dinesh Trivedi *30. Shri Sisir Kumar Adhikari #31. Shri Madan Lal Sharma ✻ Nominated on 12th February, 2013 vice Shri Thomas Sangma. @ Ceased to be a Member of the Committee consequent upon his/her inclusion in the Council of Ministers w.e.f. 28th October, 2012. * Nominated on 14th December, 2012 vice Shri Khagen Das. # Nominated on 9th January, 2013 vice Dr. Kruparani Killi, who ceased to be a Member of the Committee consequent upon her inclusion in the Council of Ministers w.e.f. 28th October, 2012. (i) COMPOSITION OF THE DEPARTMENT-RELATED PARLIAMENTARY STANDING COMMITTEE ON TRANSPORT, TOURISM AND CULTURE (2013-14) 1. Shri Sitaram Yechury — Chairman RAJYA SABHA 2. Shri Shashi Bhusan Behera 3. Shri Kunal Kumar Ghosh 4. Shri Narendra Kumar Kashyap 5. Prof. Alka Balram Kshatriya 6. Shri Aayanur Manjunatha 7. Shri V. Hanumantha Rao 8. Shri Satish Sharma 9. Shrimati Bimla Kashyap Sood 10. Shrimati Vasanthi Stanley LOK SABHA 11. Yogi Adityanath 12. Shri Sisir Kumar Adhikari 13. Shri Ghanshyam Anuragi 14. Shri Subrata Bakshi 15. Shri Haribhai Parthibhai Chaudhary 16. Shrimati Tabassum Hasan 17. Dr. Mahesh Joshi 18. Shri M. Krishnaswamy 19. Shri G.V. Harsha Kumar 20. Shri S. Pakkirappa 21. Shri Prabodh Panda 22. Shri Deoraj Singh Patel 23. Shri Adhalrao Shivaji Patil 24. Shri Nilesh N. Rane 25. Shri Modugula Venugopala Reddy 26. Shri Madan Lal Sharma 27. Shri Dushyant Singh 28. Shri Rakesh Singh 29. Shri Shatrughan Sinha 30. Shri K. Sudhakaran 31. Shri Dinesh Trivedi SECRETARIAT Shri N.K. Singh, Joint Secretary Shri Swarabji B., Joint Director Dr. (Shrimati) Subhashree Panigrahi, Joint Director Shrimati A.S. Chakravani, Assistant Director Shri T. Kennedy Jesudossan, Committee Officer Shri P.P. Raumon, Committee Officer (ii) INTRODUCTION I, the Chairman, Department-related Parliamentary Standing Committee on Transport, Tourism and Culture, do hereby present on its behalf this Two Hundred Third Report on ‘Privatization of services at Airports’. 2. The Department-related Parliamentary Standing Committee on Transport, Tourism and Culture had gone into various issues relating to financing plan of airports as recommended by the Task Force constituted by the Planning Commission on financing plan of airports during the Twelfth Five Year Plan. 3. Apart from the representatives of Planning Commission, the Committee also heard those from the Ministry of Civil Aviation. The Committee also heard the views of Chairman, Airports Authority of India and Airports Authority Employees’ Union in its meetings held on 24th June and 9th October, 2013 respectively. 4. The Committee expresses its gratitude to the officers of Ministry of Civil Aviation, Planning Commission, Airports Authority of India, International Air Transport Association (IATA) and Airports Authority Employees’ Union for their cooperation in furnishing the required information and feedback in connection with the examination of the subject. 5. The Committee considered and adopted the Report in its meeting held on the 31st October, 2013. SITARAM YECHURY NEW DELHI; Chairman, October, 31st, 2013 Department-related Parliamentary Standing Kartika 9, 1935 (Saka) Committee on Transport, Tourism and Culture (iii) LIST OF ABBREVIATIONS AAI – Airports Authority of India ADF – Airport Development Fee ADSS – Automatic Dependence Surveillance System ATF – Aviation Turbine Fuel ATMS – Air Traffic Management Services CNS – Communication, Navigation and Surveillance CoI – Committee on Infrastructure GAGAN – GPS Aided Geo Augmented Navigation GPS – Global Positioning System ILS – Instrument Landing System IMG – Inter-Ministerial Group ISRO – Indian Space Research Organization MCA – Model Concession Agreement MoCA – Ministry of Civil Aviation OMDA – Operation, Management and Development Agreement PBN – Performance Based Navigation PPP – Public Private Partnership UDF – User Development Fee VHF – Very High Frequency VOR – Very High frequency Omni directional Radio range (iv) 1 REPORT Introduction Airports Authority of India (AAI) manages a total of 125 Airports, which include 16 International Airports, 08 Customs Airports, 81 Domestic Airports and 25 Civil Enclaves at Defence Airfields. Besides, AAI has entered into Joint Ventures to develop and operate Greenfield Airports of the world standards at Mumbai, Delhi, Hyderabad, Bangalore and Nagpur. 2. AAI is the sole provider of Air Navigation Services over entire Indian Air Space and adjoining oceanic areas with ground installations at all Airports and 25 other locations to ensure safety of Aircraft operations. All major air-routes over Indian landmass are Radar covered along with VOR/DVOR coverage co-located with Distance Measuring Equipment. 52 runways are provided with ILS installations with Night Landing Facilities at most of these Airports and Automatic Message Switching System at 15 Airports. 3. AAI’s successful implementation of Automatic Dependence Surveillance System (ADSS), using indigenous technology, at Calcutta and chennai Air Traffic Control Centres, gave ‘India the distinction of being the first country to use this advanced technology in the South East Asian region thus enabling effective Air Traffic Control over oceanic areas using satellite mode of communication’. Use of remote controlled VHF coverage, along with satellite communication links, has given added strength to our ATMS. Linking of 80 locations by V-Sat installations shall vastly enhance Air Traffic Management and in turn safety of aircraft operations besides enabling administrative and operational control over our extensive Airport network. Performance Based Navigation (PBN) procedures have already been implemented at Mumbai, Delhi and Ahmedabad Airports and are likely to be implemented at other Airports in phased manner. 4. AAI has undertaken GAGAN project in technological collaboration with Indian Space and Research Organization (ISRO), where the satellite based system will be used for navigation. The navigation signals thus received from the GPS will be augmented to achieve the navigational requirement of aircrafts. First Phase of technology demonstration system has already been successfully completed in February 2008. Development team has been geared up to upgrade the system in operational phase. 5. AAI had undertaken modernization and development of the Metro airports at Chennai and Kolkata at the cost of Rs.2,015 crores and Rs.2,325 crores respectively, in addition to several non- metro airports spread across the country. While the modernization and expansion of these two Metro airports have been completed, some more airports are expected to be completed by December, 2014. These airports have just been modernized by Airport Authority of India (AAI) after investing a huge