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Journalism of Courage
A day before the Empowered Group of Ministers meet, the Civil Aviation Ministry has secured a favourable opinion from the Attorney General on key questions being raised by the Left on restructuring of Delhi and Mumbai airports.
But to further consolidate its position on how the technical evaluation was carried out, another committee may now be asked to carry out a final review of the process and submit its report within 15 days. This is likely to headed by the Cabinet Secretary, but a final decision will be taken when the EGOM, under Defence Minister Pranab Mukherjee, meets on Wednesday.
In response to the opinion sought by the Civil Aviation Ministry on just two bidders qualifying the technical evaluation and on the issue of Global Financial Advisor (GFA) ABN-AMRO being associated with the some of the bidders, the Attorney General is learnt to have said that there is no conflict of interest in such a situation.
The A-G has supported the argument with various court judgments which take into account that firms like ABN-Amro have diverse business links. It is important to note here that an undertaking to maintain confidentiality was given by the financial advisor. Officials point out that ABN-Amro has no role in the technical evaluation which was carried out by another advisor.
The Left, prompted by some bidders who did not make the cut, has put ideology on the backburner and is, instead, targeting the government on the bidding process.
It has alleged that process was ‘‘rigged’’ to favour a couple of consortia and that the GFA appointed by the government has business association with these bidders. It has, however, glossed over the fact that the financial and technical advisors were appointed when the NDA was in power.
At the last meeting of the EGOM earlier this month, the matter was referred back to the Inter-Ministerial Group—comprising senior officials of ministries in the EGOM—which was asked to review the technical evaluation after the Planning Commission representative raised doubts over just two bidders qualifying for the two airports.
There has been no consensus within the IMG but the A-G’s opinion, which will be circulated along with the IMG report, is expected to remove doubts over the legal aspects on these two key issues. Still, sources said, the EGOM may want to add another layer of screening to the entire process and appoint a committee to review the evaluation.
Much of today was spent in the government ruminating over options that are available before it to save the process. It’s learnt that Prime Minister Manmohan Singh has had discussions with Civil Aviation Minister Praful Patel. other airports on the model of Delhi and Mumbai. Another failed attempt would also lower investor interest in any further endeavour to revive the project.
