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 19,2020

May 19: Congress general secretary Priyanka Gandhi Vadra's office on Tuesday said the Uttar Pradesh government has demanded that the 1,000 buses the party wants to ply for ferrying migrant labourers back to the state be handed over in Lucknow this morning and alleged that the move is politically motivated.

It also alleged that the demand shows that the UP government lacks the intention to help those stranded at the state's borders.

The Uttar Pradesh government on Monday had accepted the Congress' offer to run 1,000 buses to bring migrant labourers back to the state, a proposal which had triggered a war of words between the two sides.

In a letter to Additional Chief Secretary Avneesh Kumar Awasthi, Priyanka Gandhi's private secretary Sandeep Singh said a letter was received from the UP official at 11.40 am via email, in which it has been stated that 1,000 buses with all documents be handed over at Lucknow by 10 am on Tuesday.

"In a situation when thousands of workers are walking on the streets and thousands of people have gathered at the UP borders at various registration centres, sending 1,000 empty buses to Lucknow is not only a waste of time and resources but is also inhuman and the product of an anti-poor mindset," Singh said in the letter in Hindi.

"This demand of your government seems politically motivated. It does not seem that your government wants to help our labourer brothers and sisters who are facing a disaster," the letter said.

The state government had asked Priyanka Gandhi, who had made the offer, to provide it with a list of buses along with the names of their drivers and conductors.

Subsequently, her private secretary Singh had given details of the buses and its drivers to the UP government in an email.

"All details of the 1,000 buses are attached with this e-mail. Out of them, a few drivers will be reverified and those details will also be mailed to you in a few hours. I hope you will give permission for those buses to ply as soon as possible," Singh had said in the communication to the UP government on Monday.

The Congress leader had recently written to Uttar Pradesh Chief Minister Yogi Adityanath, seeking permission to run 1,000 buses at her party's expense.

The party had then accused the BJP-run UP government of ignoring the offer.

"The offer made to the chief minister through the letter on May 16 in connection with migrant labourers has been accepted," Additional Chief Secretary Awasthi (Home and Information) had said in a letter to Priyanka Gandhi's private secretary.

A little later on Twitter, Priyanka Gandhi, who is the Congress general secretary in charge of eastern Uttar Pradesh, had thanked Adityanath.

"Thank you for allowing us to run 1,000 buses at the expense of the Congress to help thousands of brothers and sisters walking on the roads in Uttar Pradesh," she had tweeted in Hindi.

She had said the Congress will stand with these people during the difficult time they face.

In a television interview earlier on Monday, Adityanath accused the Congress of playing politics over the plight of migrant workers.

Singh in his letter on Tuesday also expressed surprise at the chief minister, saying his government was demanding the details of buses since the last three days and asserted that the details were provided immediately after the letter from the UP government was received in this regard.

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Agencies
May 10,2020

New Delhi, May 10: A medium-intensity earthquake of 3.4 magnitude hit Delhi on Sunday.

According to the National Center for Seismology (NCS), the quake occurred at 1.45pm at a depth of five kilometres.

There were no immediate reports of loss of life or property.

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News Network
May 22,2020

Mumbai, May 22: The Reserve Bank of India (RBI) on Friday reduced repo rate by 40 basis points to 4 per cent in an effort to further boost liquidity in the economy which has been reeling under the impact of COVID-19 induced countrywide lockdown.

As a result, the reverse repo rate stands at 3.35 per cent, said RBI Governor Shaktikanta Das. The six-member monetary policy committee (MPC) voted 5:1 in favour of the decision.

Repo rate is the rate at which a country's central bank lends money to commercial banks, and the reverse repo rate is the rate at which it borrows from them. 

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