newsdog Facebook

Cabinet decision: Proposal to manage six AAI airports under PPP gets nod

Fadu News 2018-11-09 05:14:25

The Union Cabinet on Thursday approved a proposal to lease out Ahmedabad, Jaipur, Lucknow, Guwahati, Thiruvananthapuram and Mangaluru airports for operation, management and development under public private partnership (PPP).

This would be done through Public Private Partnership Appraisal Committee (PPPAC).

The operation, management and development of all these aerodromes, owned by the Airports Authority of India (AAI), would be done under PPP, an official tweet said.

Any issue that is beyond the scope of PPPAC would be dealt with by an empowered group of secretaries, the tweet said.

The group would be headed by NITI Aayog CEO. Secretaries of Civil Aviation Ministry, Department of Economic Affairs and Department of Expenditure would be part of the group.

the Cabinet Committee of Economic Affairs (CCEA) chaired by Prime Minister Narendra Modi on Thursday decided to sell Dredging Corporation of India Ltd (DCIL) to a clutch of state-owned port trusts.

The government holds 73.4 per cent in the Visakhapatnam-based Dredging Corporation, whose market-capitalisation at Wednesday’s close was Rs 975 crore. According to the decision, government shares in DCIL would be sold to consortium of four ports namely, Vishakhapatnam Port Trust, Paradeep Port Trust, Jawahar Lal Nehru Port Trust and Kandla Port Trust. The strategic disinvestment of DCIL shall be undertaken after conducting due diligence exercise by both the entities with the help of advisers, appointed for the transaction.

The Cabinet also approved filling up of Padur Strategic Petroleum Reserves (SPR) in Karnataka by overseas national oil companies. The SPR facility at Padur is an underground rock cavern with a total capacity of 2.5 million metric tonnes.

India has build 5.33 million tonnes of emergency storage in underground rock caverns in Mangalore and Padur in Karnataka and Visakhapatnam in Andhra Pradesh. While a third of the Visakhapatnam facility has been hired by Hindustan Petroleum Corp Ltd (HPCL), Abu Dhabi National Oil Co (ADNOC) and government of India has filled the storage at Mangalore. The 2.5 million tonnes Padur facility remains empty.

“The filling of the strategic petroleum reserves (SPR) under public-private-partnership model is being undertaken to reduce budgetary support of government of India,” an official statement issued after the meeting said. —With FE & PTI