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Saturday , May 17, 2008 at 2315 hrs The Delhi International Airport Ltd (DIAL) controversy raises issues that are no doubt important. But as one reads about them, one is reminded of an apocryphal quote, ascribed to various people, including Indira Gandhi. “It is nice to be important, but it is more important to be nice.” Consider what’s been reported about DIAL’s meeting with Planning Commission. First, a world-class airport awaits us and after all, this is phased expansion and modernisation, with a time-line of 20 years. What’s 20 years when we have waited since 1947? Second, some clearances (number of CISF (Central Industrial Security Force) personnel, immigration personnel, X-ray machines) are beyond DIAL’s control, as are decisions about relocating airline offices, Indian Air Force blocks and VIP gates. Third, DIAL is now taking emergency transitory measures that weren’t part of the original Operation, Management and Development Agreement - Haj terminal, interim terminal. Add reports of the spat between Civil Aviation Ministry and Planning Commission. Apparently, the Minister first took objection to the Deputy Chairman meddling in Ministry matters. His letter said, “The modernisation of Kolkata and Chennai airport is being delayed due to constant objections being raised by the Planning Commission about the scale and size of these airports we planned to construct.”
We now have some additional issues, beyond land acquisition problems (Chennai). For instance, fourth, there is the question of how modernisation and/or expansion are financed. As a general point on infrastructure, it is indeed true that India hasn’t yet experimented enough with equity driven models, or even higher user charges. If it is public resources, one can’t duck the point about trade-offs and opportunity costs. What’s the case for spending them on Kolkata rather than the North-East? And fifth, aren’t costs (including environment and land) lower for relatively green-field projects (like Bangalore) rather than expansion/up-gradation of existing ones? These are serious and important issues, none of which have simple answers and debate is inevitable. However, I don’t think the DIAL problem is about these. Nor is the problem about delays and DIAL management failing to anticipate 20% annual increase in passenger traffic. It is about mismanagement of the transition. DIAL banners all over Delhi airport ask passengers for their patience and understanding. The patience exists. But, because of mismanagement, the understanding does...
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