With govt pushing PPP aggressively, incoming AAI boss Arvind Singh has his task cut out

With government aggressively pushing airport privatization, Arvind Singh would have to address the concerns of the workers’ unions.
arvind singh

TLI Staff

New Delhi: The newly-appointed boss of state-run Airports Authority of India (AAI) Arvind Singh faces numerous challenges in his new role.

With government aggressively pushing airport privatization, the incoming Chairman would have to first address the concerns of the workers’ unions that have vehemently opposed the move to lease out profitable airports.

While it would be a tough task for him to convince unions for giving up their demands, the Maharashtra-cadre IAS officer would be under immense pressure from government to offer more and more airports on PPP, a key performance metric.

Known for his peoples’ skills and approaching an issue with open mind, Singh would face key test in his bureaucratic career. He will have to always keep in mind that AAI is commercial organization, unlike government departments that he has served for mostly.

“He does not put airs and graces the way many bureaucrats do,” said a person associated with Singh.

An economics graduate from the elite St. Stephen’s College in Delhi, he probably does not need any coaching.

While handing out more airports would certainly help him score more points, the job after that is not less daunting either. With profitable airports going away from AAI fold, he would have to earn enough revenue from the remaining airports to run the organization.

Sources said the new AAI chief would take charge next week following his relieving from the Maharashtra government.

Among other major tasks, the new boss would need to bolster non-aeronautical revenue from its airports. The public sector agency has lagged far behind private rivals on this front and would have to catch up fast.

The AAI officials have shied away from pushing non-aero activities at its airports fearing questions from the 3Cs — CAG, CBI and CVC.

With mandate from the government to take flying to smaller towns and far-flung areas, the 1988-batch IAS officer would need to fast-track airport development in new areas.

Arvind Singh is currently Additional Chief Secretary (Energy) in Maharashtra. Prior to this, he was Managing Director of Maharashtra State Electricity Transmission Company Ltd (MSETCL).

Singh would join AAI in the rank and pay of Additional Secretary.