Saturday, April 22 2006 11:33 Hrs (IST) - World Time -

New Delhi: Heeding to the demands of Left parties and trade unions, Civil Aviation Minister Praful Patel has made it clear that the Airports Authority of India (AAI) would continue to manage the 35 non-metro airports which have been shortlisted for upgradation and modernisation.

Describing as absolutely misleading reports that AAI would not take the lead role and go for private sector participation in these airports, he told Karan Thapar's 'Devil's Advocate' programme that the 35 airports will be modernised with AAI playing the lead role.

"There will be a joint venture in each of these 35 airports for non-aeronautical development, that means development of retail, hotels, car parks etc. The Airports Authority will run these airports", Patel was quoted as saying in a release issued by programme producer ITV.

He said all these airports were being designed by global competition and not in-house.

"The entire projects are going to be turnkey projects, so they will be made in time with quality specifications," he said.

On Delhi and Mumbai airports, Patel said he had spoken to the unions and the Left parties and claimed there would be no confrontation and the two airports would be handed over to the joint venture companies.

"I have assuaged a lot of misconceptions they had. I give you an assurance there will be no question of a strike or disruption, I am very sure the airports will be handed over and there will be no strikes .I have personally spoken to the unions and I have allayed all their apprehensions", Patel said.

To questions relating to the proposed Civil Aviation Policy, Patel said unlike the practice in insurance and telecom sectors, foreign airlines are not allowed to acquire equity in Indian carriers.

"The reason why we haven't taken a decision on that yet is because Indian carriers must first attain critical size and mass. They must be in a position to grow first, otherwise they will just be gobbled up", he said.

However, Patel pointed out that "We are not saying government policy shall be sacrosanct, cast in stone, it will never happen. We are saying we need Indian carriers to evolve over a period of time".

"I am not saying it will never happen, it will never be allowed. I think it will happen. I think Indian carrierswill definitely scale up to 1,000 aircraft in five years time"when they would have achieved the critical mass and be healthy to invite anyone to participate," he said.

On the proposal to merge Air India and Indian as well as issuance of their IPO, Patel said he had discussed the matter with the Left parties and unions and "nobody has an objectioneither to raise money by IPO or to merge" the two airlines.

"I have discussed these issues with everybody, including the Left parties, and brought unanimity that Air India and Indian cannot survive in the long run with a low equity base," he said, adding not a single employee of the two carriers would be retrenched.