Government informed the Lok Sabha that it has set prescribed norms for attracting Foreign Direct Investment (FDI) for development of airports, including greenfield projects, but has not received any proposal.
Civil Aviation Minister Ajit Singh said during Question Hour that the government has been encouraging FDI for development of various airports and has set prescribed norms for attracting it in the civil aviation sector.
“No FDI has come in the airport sector so far in the country,” Singh said in a written reply.
The minister informed the House that 100 per cent FDI equity is permitted for greenfield airports as well as existing projects.
In reply to demands from some members for including their constituencies on the Air India flight routes, Singh said, “Airlines decide this on commercial considerations. We don’t ask airlines to start flights to certain destinations except the North-East, Jammu & Kashmir and the Andamans.”
He said the new terminal of Kolkata airport is in use while the new terminal at Chennai airport is facing some ground handling problems. No airport use charges are being levied at Chennai due to this.
He said his ministry will look into the demand for building an airport at Kokrajhar in the northeast while efforts are on to have a civilian enclave at the Jhansi airport which is now with the defence ministry.