Make greenfield airports for Delhi, Mumbai: CPM

Backing a proposal by the Left-backed AAI Employees Forum for the modernisation of Delhi and Mumbai airports, the CPI(M) says the current bi...

Backing a proposal by the Left-backed AAI Employees Forum for the modernisation of Delhi and Mumbai airports, the CPI(M) says the current bidding process should be scrapped. Alternatively, the party says a proposal by the Parliamentary Standing Committee for constructing the two airports as greenfield projects be considered.

CPI(M) MPs Nilotpal Basu (who is on the Parliamentary Standing Committee on Transport, Tourism and Culture) and Mohammed Salim quoted the 90th report on the development of the airport sector to say the committee had pointed out that a world-class airport could not be built using the current modernisation process as it did not permit capacity addition.

The MPs said there was a conflict of interest between the legal, financial and technical consultants and the bidders. Legal consultant ABN Amro had bidders Reliance and AMR as its client while a partner in legal consultants Amarchand Mangaldas was on the board of Reliance Energy till May 2004 when the consultant appointment process by the Civil Aviation Ministry was in full swing.

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Basu and Salim described the ‘‘alienation’’ of Nagpur airport assets to the state government as a ‘‘major irregularity’’ to give a major tax exemption to the private consortium that will get control of the Mumbai airport. ‘‘This exercise though at an advanced stage has been sought to be glossed over through a reply to the Rajya Sabha,’’ the MPs said.

However, the Civil Aviation Ministry later denied transferring any assets to the Nagpur airport. The matter, it said, was under consideration after the Maharashtra government had approached the Civil Aviation Ministry in August.

Officials pointed out that the stamp duty waiver for Mumbai airport impacts the profit projections of the bidders, so no waiver would have meant lesser revenue share for the Airports Authority of India. The Left, thus, is objecting to a provision benefiting the AAI.

As for Nagpur airport, the government is considering a role for AAI like that of a stakeholder in the consortium. It may be noted that Nagpur is a loss making airport for AAI and Maharashtra government’s plans will convert it into a major cargo hub.