Uncertainty over airport funding

Ahead of a proposed visit within the next fortnight by Prime Minister Manmohan Singh to install the foundation stone of an international terminal at Tirupati airport in Andhra Pradesh, there is uncertainty over who will fund the construction of the new terminal there.

The civil aviation ministry and Airports Authority of India (AAI) have taken the view that since Tirupati is a loss-making airport, the AAI does not have the money to spend on construction of the terminal there. However, the ministry and AAI are pushing for allocation of about Rs 125 crores from the Planning Commission.
Political parties in Andhra Pradesh have been keen that the Prime Minister should install the foundation stone for the new terminal.
“The view of the ministry is that the international terminal at Tirupati can be built if the Planning Commission makes a grant of about Rs 125 crores for this,” well-placed ministry sources said. The Union government has given the clearance for functioning of Tirupati airport as an international airport subject to the introduction of certain facilities and infrastructure there.
Currently, only about nine domestic flights operate on an average from Tirupati airport. There are no international flights operating from Tirupati. Since Tirupati is one of the biggest pilgrimage sites in India, political parties are supporting the commencing of international flights to the Temple town. Lakhs of people from all over India and NRIs from abroad visit Tirupati temple throughout the year.
However, civil aviation ministry sources said that the AAI-run Tirupati airport is failing to earn profits since most pilgrims prefer to visit by road from nearby Chennai.

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