Confusion prevails over commercial exploitation of realty in airports

The aviation ministry’s initiative to permit private airport operators gain access to a larger part of land leased by Airport Authority of India for commercial exploitation has suffered a setback by the Attorney General.

The ministry had recently sought Goolam E Vahanvati, Attorney General’s opinion if Airport Authority of India (AAI) can be allowed to use land for commercial purposes that are unconnected with the scope of airport development and management. These could be golf courses, business or hi-tech parks, office accommodation, leisure facilities, sports and shopping complexes, or even convention centres.

Vahanvati said he would give an opinion only if the ministry came through the Empowered Group of Ministers (EGoM).

In the recent past, GMR and GVK, who operate the Delhi and Mumbai airports, respectively, have cited resource constraints and have been pitching hard with the ministry to let them unlock the value of the real estate leased to them by AAI.