The EGoM approval to 74 per cent private equity for modernisation and restructuring assures world-class airports at Mumbai and Delhi

Praful Patel is a happy man. No sooner had he taken over the reins of the civil aviation ministry, he managed to leave behind the scalding privatisation issue caused by adverse statements from the left, which had caused major ripples even before the government was formed. Patel now breathes easy with the empowered group of ministers (EGoM), having approved the privatisation of the Mumbai and Delhi international airports. For the successful entrepreneur-turned-politician, it is a successful beginning to his ministerial assignment, too.

But Patel is not the only winner. In fact, with the simmering airport privatisation issue coming to a positive conclusion, you and me and all air travellers have won…for it trumpets better aviation days. Ideally, the government should focus on social sectors and only provide impetus to the development of basic infrastructure. It should let private organisations use their resources and expertise to provide world-class infrastructure.

The EGoM, under the chairmanship of defence minister Pranab Mukherjee has decided to allow 74 per cent private equity, with a cap of 49 per cent on foreign direct investment. The foreign investors will bring in their experience, managerial and technical expertise while Indian private investors would complement them to turn the two airports into world-class facilities with a lesser burden on the public exchequer - and faster.

According to the decision, two separate joint venture companies would be formed for the two international airports. The foreign firms will not be allowed to hold more than 49 per cent equity. Indian firms, including domestic financial institutions, would hold a 25 per cent stake in the firms while the Airports Authority of India (AAI) will hold the remaining 26 per cent. It has also been decided that over a period of time, 60 per cent of the existing employees would be deputed to the new joint venture while the remaining would be retained by the AAI.

In a pragmatic decision that mollifies the Left parties, the EGoM has also decided that proposals from bidders for the airports would be judged by, apart from the financial and technical parameters, their human resource plan. The successful bidders will be required to submit a human resource plan for the absorption of the maximum number of existing staff in the joint ventures. Hopefully, with these clauses, the 6,000 AAI employees will breathe easy and lend their willing support to the success of a landmark privatisation supported by the Left.

India is rapidly becoming a global business destination and hence needs infrastructure and other supporting facilities on par with the best in their class - and fast. The issue is not just whether AAI has enough money to revamp airports. The question is, will we be able to upgrade our infrastructure to global standards fast enough?

Hopefully, yes. And the airports will offer not just better amenities but better services as well. Sameer Prasad, a corporate air-traveller says, "The airports here are far behind in terms of amenities as compared to Europe... the staff in India seem to be quite untrained. Most time they are indifferent and at times downright hostile, which can be quite an unnerving experience for foreigners and disappointing to Indians."

What global, and even domestic, travellers require are a comfortable experience at airports in terms of more advanced amenities such as information and help desks, communications connectivity, rest areas and dining facilities, 24-hour medical centre, pharmacies, fitness centres, baby change rooms, etc.

The business delegate would also find business centres right at the airport itself. To the discerning business delegate, this could mean saving on both time and hotel bills. More importantly, the airports would be equipped with better safety measures and trained personnel to handle emergencies and cope with disaster management.

Some of these may still be a little in the future but can nonetheless be expected and when that happens, perhaps, an Arthur Hailey, could be expected to dramatise a thriller at Delhi or Mumbai airport instead of Lincoln airport, California.