Chennai, April 20 (SocialNews.XYZ) With the central government planning to privatize the airports, the government of Tamil Nadu made a political decision to have a share of the revenue made by the former when transferring the airport.
According to the policy brief presented by Tamil Nadu Minister of Industries, Thangam Thennarasu to the Assembly on Tuesday, the Airports Authority of India (AAI) is actively pursuing the policy of airport privatization.
“Therefore, a decision has been taken that in case the State Government acquires and transfers the land to the Airports Authority of India free of charge and the Airports Authority of India or the government of India transfer the assets to a third party, the realized value/revenue thereby generated shall be shared proportionately with the state government, reflecting the huge investment in land made by the state government,” says the policy note.
According to the policy note, the state government has decided that at the appropriate stage, it must be ensured that the value of the land should be converted into equity of the state government in the special purpose vehicle of the project. airport or an appropriate revenue sharing agreement. proportional to the investment is established before any transfer of assets to a private party.
The Government of Tamil Nadu stated that in line with the decision made in 2007 to build new airports/expand airports, it is acquiring land and giving it away free of charge without any charge to AAI.
“In current projects, the cost of land makes up the bulk of the overall project cost,” the policy note says.
Meanwhile, the government said the AAI had requested 64.57 acres of patta land and the disposal of 11.58 acres of poramboke land for Chennai airport.
“Of this amount, 30.57 acres of patta land will be handed over to Chennai Airport by the end of April 2022. Disposal proposals are being processed at various stages. An online application for the transfer of 16, 89 acres of defense land to the Airports Authority of India has been submitted and orders are awaited from the Ministry of Defence, Government of India,” the government said.