CONTENTS
RESOURCES
AIRPORT REFORMS - MAKE OR BREAK FOR MANMOHAN SINGH
It is a battle of nerves that will perhaps determine the future of economic reforms in the country. The matter relates to the privatization of airports in India, more specifically Mumbai and Delhi that handle the bulk of the domestic and international air traffic.
Ranged against each other are the Congress party led United Progressive Alliance (UPA) government and the crucial coalition partners, the Left parties who are siding with the unionized workers of the state-controlled Airports Authority of India (AAI) that has so far managed the airports. There has been considerable speculation that New Delhi would not muster the courage to open the bids for private control and anger the Left parties, without whose support the government will collapse.
In a bold move, New Delhi opened the bids for the airports this week, that has been won by two of India's leading construction firms, GMR Industries and Frankfurt airport operator Fraport for Delhi and GVK group and its South African partner for Mumbai. The cabinet has approved the revamp plans. As part of the deal the airports will be leased to the ...
