India will call for expressions of interest from the private sector to run the country's four largest airports in a bid to bring them up to international standards.

Leases for the New Delhi, Bombay, Calcutta and Madras airports are expected to be awarded by the end of March 2003.

"What we are looking for is a consortium, which might consist of, ideally, an airport operator, a builder who will bring construction experience and a financier, who will bring the money," V. D. V. Prasad Rao, chief financial officer at the Airports Authority of India (AAI), told Reuters.

Mr Rao said the leases were the fastest way to improve service but ruled out privatising the airports as too time consuming because it required complex legislative changes.

Clear for take-off

New Delhi and Bombay would be leased to separate companies and no lessee would be allowed to operate more than two airports, Mr Rao said.

The leases would run for 30 years and AAI has considered setting minimum investment levels for each airport in the first three years.

Mr Rao expects a good response because they are the country's most profitable, with traffic growth of up to 5.5% a year.

AAI, an umbrella body that operates India's more than 120 airports, receives over 60% of its revenues from the four airports.

Landing rights

Operators will be free to change airport charges - after government consent - for landing, parking and other aeronautical services, to recover investments.

The companies would also be allowed to boost revenues by building golf courses, hotels and restaurants at airports.

Except for Bombay, the three other airports have surplus land which could support these developments.