‘Greenfield airports will be executed under PPP and hence there will be no difficulty in land acquisition’

V.P. Agrawal, Chairman, Airports Authority of India (AAI), has embarked on a mission to bring about perceivable change in Indian airport infrastructure to bring it on par with the best in the world. In an interview with SP’s AirBuz, he shares his dream of creating airport infrastructure in the remotest corner of the country providing nationwide connectivity and ensuring that our countrymen in the far-flung areas benefit from development and contribute to economic growth.

SP’s AirBuz (SP’s): You have completed three years in office as Chairman, AAI. Can you highlight the major challenges that you have faced during this period and your accomplishments?

V.P. Agrawal (Agrawal): Three long years have gone and one doesn’t realise how time flies, especially since one is extremely preoccupied in executing the tasks on hand. These years have not only been challenging but exciting too. I have been able to successfully negotiate the challenges as I was baptised under the turbulent period of global economic meltdown. We faced the stormy conditions upfront ensuring that it did not affect the ongoing modernisation/development plans. Besides, 2011 can be described as the worst for the Indian civil aviation industry. If one were to extend its generalities to the year that we have just entered, the emerging picture could be even more confusing. It is just that there are too many imponderables which need to be assumed and addressed by authorities at different levels. Or else, it could be a rocky year again notwithstanding all the stakeholders’ optimism to witness a ‘Rocking Year’. The saving grace being that we implicitly followed the axiom “when the going gets tough, the tough get going”; maintaining ‘perseverance’ as the buzz word. This has indeed paid high dividends and the rest is history. Our achievements are not only there to see but in the true sense a testimony of our unflinching dedication and determination to develop world-class airport infrastructure. I would emphasise the circumstances/environment under which airport projects have been executed. All development/modernisation projects undertaken by AAI are Brownfield and not Greenfield projects. Any major work for modernisation of an airport in operation is always more challenging than a Greenfield airport as no work can be done at the cost of safety, operational efficiency or convenience of the passengers. Greenfield projects also have their own challenges. This I say with experience as AAI has been entrusted with the task of building an airport at Pakyong, Sikkim. Building a Greenfield airport in hilly terrain poses formidable challenges such as levelling hills and filling valleys. Notwithstanding the challenges, we have succeeded.

The altered skylines of the airports with newer, user friendly, world-class terminal buildings are visible but the advancements in CNS-ATM infrastructure is not. It was indeed a herculean task to keep pace with the phenomenal growth in Indian civil aviation in the last decade as the density of air traffic increased significantly. The latest technologies were inducted, and procedures redefined to meet the requirements, changed the scenario. The achievements by AAI in CNS/ATM were appreciated at the 22nd Meeting of ICAO Asia-Pacific Air Navigation Planning and Implementation Regional Group held at Bangkok in September 2011, wherein, the general consensus was that all member states ought to take advice of AAI and follow suit. Our dream project i.e. satellite-based navigation system GAGAN, which is in an advanced stage, has provided entry into the elite group comprising USA, UK, Japan and India. AAI’s accomplishments are an ideal catalyst to instil the sense of pride. Permit me to share a compliment from an authority, “The magnificent work done by AAI makes you stand out.”

SP’s: What is the present position regarding the development of 35 non-metro airports?

Agrawal: The present position is encouraging as we have completed most of our projects barring a handful which are in the final stages and would be completed this year.

SP’s: What progress has been made in respect of air connectivity in the Northeast Region (NER) in the last three years?

Agrawal: In the last three years, there has been a perceivable change in the NER. Due emphasis is being laid on both inter and intra connectivity for which Guwahati is being developed as ‘interregional’ hub. Agartala, Imphal and Dibrugarh are being developed as ‘intra-regional’ hubs’. More importantly, airports in that region are being upgraded and provided with night landing facilities. Shillong airport will be made capable for all-weather operation by A-321 type of aircraft. Dibrugarh runway is being extended so as to enable the airline to offset the load penalty imposed by runway of inadequate length and reduce operating cost. For better connectivity in NER, AAI is constructing a Greenfield airport at Pakyong, Sikkim, which would cater to ATR-72 type of aircraft. Work is likely to be completed by December 2013. Greenfield airports at Itanagar in Arunachal Pradesh and Chiethu in Nagaland are also on the cards.

A number of not-in-use airports in the region are being operationalised to enhance connectivity in the NER. These airports are Tezu, Daparizo, Along, Zira, Passighat, Kamalpur, Rupsi, etc. Work for development of Tezu airport has already begun and is likely to be completed in December 2013.

SP’s: During the US-India Aviation Summit 2011 it was stated that after 35 non-metro airports, another 30 have been identified for development. Can you please name some of these and indicate the time frame for execution of this plan?

Agrawal: In addition to the 35 non-metro airports, the development programme is for 23 airports, not 30. The airports identified for modernisation/upgrade are Rajkot, Agatti, Gondia, Hubli, Belgaum, Dimapur, Jammu, Patna, Rajahmundry, Vijayawada, Kullu, Cooch Behar, Silchar, Jaisalmer, Leh, Tuticorin, Tirupati, Cuddapah, Warangal, Bagdogra, Pantnagar and Pondicherry. Work has since commenced and is expected to be completed by the end of next calendar year.

SP’s: In the US-India Aviation Summit 2011, it was also stated that 14 Greenfield airports are under development. Land acquisition being a politically sensitive issue, has AAI encountered any difficulty in this regard? What is the current status in this segment?

Agrawal: The Greenfield airports which are to be developed are those where the concerned state governments have indicated their interest based on their intent to boost tourism and industrial/economic growth. There can therefore be no impediment political or otherwise in land acquisition/allocation. Moreover, Greenfield airports will be executed under the PPP and hence the perception of any difficulties likely to be encountered in land acquisition is misplaced.

SP’s: During the summit it was evident that the American counterparts were impressed by the huge investment opportunities in India. Is there any action being contemplated to reform the existing regulatory mechanisms to make them more investor-friendly and bring them in line with international standards?

Agrawal: India being a vast country with multifarious assets such as cheap labour, plethora of world standard technical/business administrative acumen/expertise available, can rise to the occasion and meet the aspirations of a dynamic entrepreneur. The most important advantage that can be exploited is the wide range of airports excluding the metros to pick from and to establish their base. I exclude metros for two reasons. Firstly, at any metro airport, availability of land in the city for setting up a business venture would be a problem. Secondly, the price would be exorbitant. We can offer over 100 airports to choose from, especially in some enterprising states to commence business venture, which will be a win-win proposition for all concerned. As regards reforming the existing mechanism in our area of responsibility, I am afraid we at AAI have no hold on regulatory mechanism for we are only service providers and not a regulatory body. The interested entrepreneurs would perforce have to get themselves familiarised with not only the rules/regulations related to their core business but also business ethics as prevailing in the industry in India. We at AAI would not be found short on providing the services related to our field.

(To be continued)