Eight Indian airports incur total loss of Rs 82 cr in 3 yrs

December 1, 2014

Eight airportsNew Delhi, Dec 1: Eight non-metro airports modernised using public money have no scheduled flights operating there, leading them to incur a total loss of about Rs. 82 crore in the last three years.

As government pushes for air connectivity in remote areas, official figures show that these eight airports have jointly incurred a total loss of over Rs. 25 crore in 2011-12, over 27 crore in 2012-13 and almost Rs. 30 crore in 2013-14, official sources said.

Reacting sharply to the "precarious" situation prevailing at these airports, aviation industry experts said only market conditions and operational viability and "not political compulsions" should determine developing airports or creating new ones.

The airports, which were modernised and upgraded by state-run Airports Authority of India (AAI) but have no scheduled flights, are at Akola (Maharashtra), Bikaner and Jaisalmer (Rajasthan), Coochbehar (West Bengal), Cuddapah (Andhra Pradesh), Pathankot and Ludhiana (Punjab) and Puducherry.

Details regarding the cost of modernising these airports were not immediately available. Similarly, the figures on losses of Bhatinda and Jalgaon airports, also modernised by AAI with no scheduled flights operating from there, were also not available.

Asked why airlines were not flying to these places, official sources said it was up to the airline operators to provide air services to such places "depending on the traffic demand and commercial viability", apart from the route dispersal guidelines.

However, industry experts disagreed saying airlines should be consulted first before investments are made for developing airports.

"It is a precarious situation. Airports should not be "It is a precarious situation. Airports should not be developed merely because of political compulsions, but only on the basis of operational feasibility and market conditions.

"Airports do not just mean plush terminal buildings like shopping malls. The apron and the runway are crucial for flight operations," said Debashis Saha, senior executive of professional aviation body Aeronautical Society of India.

Therefore, detailed feasibility studies for short, medium and long term flight operations should be carried out, both for passenger and cargo operations, "before any decision is taken to upgrade an airport or create a new one," he said.

Giving examples of other countries, he said airport operators like Changi in Singapore "attract airlines by offering special schemes including no or low charges and marketing budget".

"Government should make available some funds to attract airlines to Tier-II and III cities at least for three years so as to enable airlines to achieve market capitalisation and help air traffic in these sectors grow," Saha said.

Airlines should be consulted and asked to study the market potential of an airport in a remote or a non-metro city so that they can sustain day-to-day operations, Saha said, adding the airlines should also be asked to commit to launch operations if found viable.

Cost of day-to-day operations include those for maintenance of all technical equipment, the terminal, payment for staff, location of fire and security services.

Saha said the costs incurred in these areas have led to the eight airports to run into losses without having even a single scheduled flight.

Though AAI was providing incentives like no landing or parking charges and priority of slots to flights between Tier -II and Tier-III cities, he said unless the airlines were consulted beforehand, these incentives would not work and "the AAI would continue to incur heavy losses".

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News Network
May 7,2020

May 7: Accusing the BJP government in Karnataka of "medieval barbarism" and treating migrants as worse than "bonded labourers", CPI(M) general secretary Sitaram Yechury on Wednesday hit out at the state's decision to stop workers from returning to their homes in different parts of the country citing requirements of the construction sector.

The Karnataka government has withdrawn its request to the railways to run special trains to ferry migrant labourers to their home states, hours after builders met Chief Minister B S Yediyurappa to apprise him of the problems the construction sector will face in case they left.

"This is worse than treating them as bonded labour. Does the Indian constitution exist? Are there any laws in the country? This BJP state government is throwing us back to medieval barbarism. This will be stoutly resisted,” Yechury said in a tweet.

The railways is running Shramik Special trains to ferry to their home towns migrants who were stranded at their places of work during the lockdown.

So far, it has run more than 115 such trains.

The Principal Secretary in the Revenue Department N Manjunatha Prasad, who is the nodal officer for migrants, had requested the South Western Railways on Tuesday to run two train services a day for five days except Wednesday, while the state government wanted services thrice a day to Danapur in Bihar. However, later, Prasad wrote another letter within a few hours that the special trains were not required. Several migrants in the city were desperate to return home as they were out of jobs and money.

Yechury also lashed out at the central government over reports that it owed states and industry Rs 3 trillion and accused the centre of shifting the burden of fighting the pandemic to the state governments.

“While shifting the entire burden of fighting the pandemic on to the State governments, Modi government is not even paying their legitimate dues. After November 2019, Centre has not paid the GST compensation dues for the rest of the financial year, i.e., March 2020.

“Modi government has the right to loot while crores of people & States are left with nothing but the right to starve?,” he tweeted.

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Agencies
July 27,2020

New Delhi, Jul 27: Congress leader Rahul Gandhi on Monday said he is not going to lie about Chinese transgressions in eastern Ladakh even if it costs him politically, asserting he will say the truth as far as Indian territory is concerned.

Gandhi made these remarks in a tweet, along with an over-a-minute-long video, as part of a series launched by him on the India-China face-off along the Line of Actual Control(LAC) in eastern Ladakh.

Asked in the video how he would react to people who say his questions to Prime Minister Narendra Modi on China weakened India, the former Congress chief said, "If you want me to lie that the Chinese have not entered this country, I am not going to lie. I will simply not do it. I do not care if my whole career goes to hell. I am not going to lie."

"This disturbs me. Frankly, it makes my blood boil. How can some other nation just come into our territory?"

"Hiding the truth is anti-national. Bringing it to people's attention is patriotic," Gandhi said.

"So frankly, I do not care if it costs me politically. I do not care if I have no political career at all after that. But I am going to say the truth as far as Indian territory is concerned," he added.

Gandhi has been repeatedly attacking the prime minister and the government over Chinese transgressions on the LAC in eastern Ladakh.

"As an Indian, my number one priority is the nation and its people," he said on Monday.

The Bharatiya Janata Party (BJP) has hit back at Gandhi over his attack on the government on the Ladakh face-off, alleging he is seeking to politicise defence and foreign policy matters and "wash their past sins of 1962 and weaken India".

BJP president JP Nadda has also alleged that for years, a dynasty has been trying to destroy Modi, while adding that those who want to destroy the prime minister will only end up causing further damage to their own party.

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News Network
May 17,2020

New Delhi, May 17: Spelling out the government’s fourth tranche of initiatives towards achieving Prime Minister Narendra Modi’s vision of ‘Atmanirbhar Bharat’, Union Finance Minister Nirmala Sitharaman on Saturday announced significant structural reforms in eight sectors of the economy — coal, minerals, defense production, aviation, power distribution in Union territories, space and atomic energy.

Addressing her fourth and the second-last press conference, Sitharaman said crucial sectors such as coal production and exploration, defence production and space would see an increased participation from private entities.

Coal sector:

In the realm of coal exploration, the government has decided to liberalise the entry norms for private entities, which would mean that any interested party could bid for a coal block and sell it in the open market. The minister said that the government would do away with all the eligibility conditions at the time of bidding for a coal block, except requiring an “upfront payment with a ceiling.”

Nearly 50 coal blocks would be offered to private players immediately, revealed Sitharaman.

She further said that Rs 50,000 crore would be spent by Centre in creating ‘coal evacuation’ infrastructure, which would expedite the transport of mined product to the destination.

Defence sector:

In defence production, Sitharaman revealed that the government would raise the foreign direct investment (FDI) limit in the sector from current 49 per cent to 74 per cent. Further, the government would also work towards corporatising the ordnance factory boards. “Corporatising doesn’t amount to privatization,” added Sitharaman.

In a bid to boost indigenous production of defence products and gave an impetus to Make in India, Sitharaman said that the government was in a process of notifying a list of weapons/platforms for an import ban with year-wise timelines.

These decisions would also help in reducing huge import bills, the finance minister said.

Privatisation of electricity:

In another announcement that could have an effect on electricity charges in the union territories, Union Finance Minister Nirmala Sitharaman announced on Saturday that power departments and utilities in all the centrally administered territories would be privatised.

Sitharaman said that the proposed move would lead to better service to consumers and improvement in operational and financial efficiency in distribution.

The finance minister said that decision was guided by 'sub-optimal' utilisation of performance of power distribution and supply'.

She said that the move to that effect would provide a model for emulation by other utilities across the country, in what could be an indicator of what's in the pipeline for utilities in other states as well.

Sitharaman said that the privation reform was in line with the tariff policy reforms and would help in enhancing consumer rights, promote industry and improve the overall sustainability of the sector.

Space sector:

Sitharaman also announced the opening up of the space exploration sector for private players. Till date, the government-run Indian Space Research Organisation (ISRO) has held a monopoly on all activities concerning space exploration and satellite launches.

The Indian private sector will be a co-traveller in India's space sector journey, said Sitharaman, while announcing a series of structural reforms in eight crucial areas of the economy. The Union Finance Minister was addressing her fourth press conference in as many days, as a follow-up towards realising Prime Minister Narendra Modi's vision of 'atmanirbhar Bharat', which was spelled out in his video address on May 12.

Sitharaman said that the reforms in the space sector will provide a level-playing field for private companies in satellite launches and space-based services.

She said that the private sector would be allowed to use ISRO facilities and other assets to improve their capacities. Stating that the government would provide predictable policy and regulatory environment to private players, Sitharaman also disclosed that future projects for planetary exploration and outer space travel among others would be opened up for private entities.

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