The Airport Authority of India (AAI) is likely to put some of its airport modernisation projects on hold even as it plans to prune down its expenditure by 20-25 per cent this financial year. The ongoing financial turmoil has increased the cost of developing an airport, resulting in AAI putting some of its projects on hold. According to a report in today’s Financial Times, AAI has planned to spend about Rs 1, 2434.34 crore during the 11th Five Year Plan (2007-2012) for the development of airport infrastructure in the country. Some projects include Ajmer, Chandigarh, Dehradun, Mount Abu, Bhubaneswar, Cooch Behar, Gaya, Agartala, Barapani (Shillong), Guwahati, Ahmedabad and Akola.
“We had planned to spend around Rs 3,400 crore on various activities including the modernisation of 35 non-metro airports across the country. However, due to the current crisis, we will cut down our expenditure by 20-25 per cent,” informed a senior AAI official. The cost-cutting measures will put some of the non-viable projects on hold. “Out of the 35 projects, some of which have been undertaken mainly for social cause will be put on hold as they are not financially viable. |