Govt mulls prison term for chief secretaries for power overdrawal

Mumbai, Feb 9: Given the slow progress on the ongoing Rs 38,000-crore capacity expansion at the four largest metro airports, and also the surging traffic, the snaky queues will continue at least till 2023, warns a report.

The four largest airports -- New Delhi, Mumbai, Bengaluru and Hyderabad -- handle more than half of the traffic and are operating at 130 per cent of their installed capacity. These airports are under a record Rs 38,000-crore capex but the capacity will not come up before end-2023, says a Crisil report.

“With the dip in traffic growth largely behind, we expect congestion at the top four airports of New Delhi, Mumbai, Bengaluru and Hyderabad, which handle more than half of the load, to continue till about FY23,” says the report.

Already these airports are operating at over 130 percent of installed capacity, and the ongoing healthy traffic growth this operating rate is expected to rise further in the next 12 months.

“Operationalising of capacities in the following two fiscals will bring down utilisation levels albeit still high at over 90 per cent by fiscal 2023 and that is despite an unprecedented Rs 38,000 crore capex being undertaken by the operators of these airports over five fiscals 2020-24,” says the report.

Despite this unprecedented capex that is debt-funded, ratings are likely to be stable given the strong cash flows expected due to healthy traffic growth, low project risks associated with the capex and improving regulatory environment, notes the report.

“Capacity at these four airports will increase a cumulative 65 per cent to 228 million annually (from 138 million now) by fiscal 2023. However, traffic is expected to grow strong at up to 10 per cent per annum over the same period. Since additional capacities will become operational in phases only by fiscal 2023, high passenger growth will add to congestion till then,” warn the report.

High utilisation will ride on pent-up demand (accumulated in 2019 as traffic was impacted with the grounding of Jet Airways) and one-off issues with new aircraft of certain airlines.

Further impetus will also come from improving connectivity to lower-tier cities and reducing fare difference between air and rail. Increasing footfalls at airports provide a leg-up to non-aero streams such as advertising, rentals, food and beverage and parking, which comprise around half of the revenue of airports already.

These are expected to grow strongly at over 10-12 per cent, also supported by higher monetisation avenue coming along with current capex. The other half of revenue (aero revenue) is an entitlement approved by the regulator, providing a pre-determined, fixed return over the asset base and a pass-through of costs.

Aero revenue is also expected to get a bump up during fiscals 2022-24, when a new tariff order for airports is likely. Overall aggregate cash flows are likely to double by fiscal 2024 and provide a healthy cushion against servicing of debt contracted for capex, the report concludes.

Thiruvananthapuram, Apr 20:  Kerala Chief Minister Pinarayi Vijayan on Monday said that the government would revoke the order, which allowed the opening of barbershops and restaurants in the State.

The development comes after the Ministry of Home Affairs (MHA) objected to the move.
When asked about the letter issued by the MHA terming certain decisions as to the dilution of guidelines, Chief Minister Vijayan said: "There is no confrontation between the State government and the Centre."

"Kerala is following all directions issued by the Centre. Barbershops will not be opened and restaurants will only provide online delivery," he told the reporters, adding that public transport would not be allowed.

"There was a decision to open barbershops but many experts have pointed out against the decision. So the Kerala government is withdrawing the decision," he said.

Earlier, Chief Secretary Tom Jose said that if needed, then the State government will make necessary modifications to the lockdown guidelines in the wake of a communication received from the Central government.

The MHA had objected to the decision of Kerala government to allow services like barbershops, local workshops, restaurants, etc., and had urged the State government to revise its lockdown guidelines.

The Government of India had said that violation to lockdown measures reported posed a serious health hazard to the public and risk the spread of COVID-19.

Union Home Secretary Ajay Bhalla wrote to all Chief Secretaries and a separate letter had been sent to the Kerala Chief Secretary asking them not to dilute lockdown guidelines in any manner.

In his letter to the Kerala Chief Secretary, Bhalla had stated that the consolidated revised guidelines on the measures to be taken by the Ministries/Departments of the Government of India has been circulated on April 15 for containment of COVID-19.

Kerala Minister Kadakampally Surendran had said that relaxations have been given abiding by the direction issued by the Central government. He had added that the Centre may have asked for an explanation due to some misunderstanding.

India is under a nation-wide lockdown that came into force on March 25 to contain the spread of coronavirus, which has claimed 559 lives in the country. Last week, Prime Minister Narendra Modi announced the extension of lockdown till May 3.

New Delhi, Mar 27: Prime Minister Narendra Modi on Friday described British premier Boris Johnson as a "fighter" and hoped he recovers from coronavirus infection.

"Dear PM @BorisJohnson, you're a fighter and you will overcome this challenge as well," Modi tweeted.

He said he prays for his good health and extends best wishes in ensuring a healthy UK.

Johnson said on Friday that he has tested positive for coronavirus after experiencing mild symptoms and is now self-isolating at 10 Downing Street in line with the medical advice.

"I am now self-isolating, but I will continue to lead the government's response via video-conference as we fight this virus," he said.