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This is an archive article published on May 10, 2008

Patel allays Left fears: no role for pvt parties in ops

In an attempt to clear the air on the Left’s opposition to delayed modernisation of airports like Kolkata and Chennai and allegations of “backdoor...

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In an attempt to clear the air on the Left’s opposition to delayed modernisation of airports like Kolkata and Chennai and allegations of “backdoor” privatisation being attempted at the 35 non-metro airports, Civil Aviation Minister Praful Patel has categorically said the private partner will not have anything to do with operation and maintenance inside the terminal building.

On Friday, the minister clarified that the terminals would be “managed and maintained by the Airports Authority of India (AAI)” to allay the Left’s apprehensions. Sitaram Yechury, who heads the Parliamentary committee on Tourism, Transport & Culture, had written to Prime Minister Manmohan Singh, asking him to intervene in the “deliberately” delayed modernisation of airports. He alleged this was being done “to privatise the modernisation of the airports through the backdoor”.

Patel quickly issued a clarification that triggered hectic consultations in the Ministry of Civil Aviation (MoCA) with the likelihood of amending the Request for Proposals (RFQ) to be issued for city-side development of the non-metro airports. RFQs are already out for Amritsar and Udaipur airports, and these clearly call for “commercial operation and maintenance of the terminal building and the development of the city side”. The scope of work, says the RFQ, may broadly include “O&M of the terminal building including commercial use of the space therein”. The MoCA has even shortlisted bidders for the two projects on this RFQ.

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Yechury, in his letter, said though the PM-headed Committee on Infrastructure (CoI) had decided to develop the city-side of airports through private-public partnership (PPP), this decision had been “reversed” by an Inter-Ministerial Group (IMG) which had sought commercial operation and maintenance of terminal buildings.

While the officials in MoCA were still examining the whole issue, Patel was clear that the IMG version was inconsistent with what the CoI had decided. While AAI usually sub-contracted commercial space within the terminal for five-year periods, the RFQs can specify upto 30 years of concession period during which the private partner would also be allowed to charge a prefixed user fee from passengers.

Patel even made an unequivocal statement on the issue. “The Government does not subscribe to the IMG’s views. The PM’s Infrastructure Committee has decided that the non-metro airports would be managed and maintained by AAI and the city-side development will be done only through joint venture partnerships,” the minister said. “It is only the allocated commercial space which would be run by private parties. Our view is categorical.”

He added though the commencement of modernisation of Kolkata and Chennai airports had been delayed by a couple of months, the process of shortlisting of construction firms and related activities was on.

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The issue is now likely to be discussed threadbare on Monday when possibilities of amending RFQs will be examined.

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