Civil Aviation Min touts PPP model as 'success story' as Oppn raises ante on privatisation

Union Civil Aviation Minister Hardeep Singh Puri defended the government's plan to allow private players to run six airports saying the public-private partnership (PPP) model adopted will generate revenue through fees which will in turn fund the development of airport infrastructure in other cities.

In August, a political slugfest erupted between the Centre and the Kerala government over the privatisation of Thiruvananthapuram airport. The Centre has decided to lease out the operation, management, and development of the airport to Adani Enterprises for a period of 50 years — a move being vehemently opposed by the state government. 

Several opposition parties have raised objections to the Centre's plan to lease out six more Airports Authority of India (AAI)-run airports. Last year, Adani Enterprises emerged the highest bidder in a global competitive bidding process to run the airports at Thiruvananthapuram, Ahmedabad, Jaipur, Lucknow, Mangaluru, and Guwahati.

PPP model a 'success story'

In a series of tweets, Puri claimed the PPP model has been a "success story", citing examples of airports like Delhi and Mumbai which together have fetched Rs 29,000 crore as revenue for AAI since 2006-07 to 2019-20, which is 21% of the total revenue of AAI. The two airports went into private hands in 2006.

The AAI, he said, has been able to develop more airports in tier-2 and tier-3 cities in the country.

Puri noted that the six airports auctioned last year handle 10% of the country’s total passenger traffic and said the PPP process has been "very transparent" with single-stage global tenders invited by AAI through the electronic tendering process. "The bid criteria was kept as highest per passenger fee revised annually on account of inflation-linked to Consumer Price Index."

According to the Civil Aviation Minister, with the lease period kept as 50 years, AAI will get approx Rs 2,300 crore upfront on the lease of the six airports. Further, the revenue projected during the lease period is much higher than the present revenue, Puri claimed and said this will enable AAI to develop better aviation infrastructure in tier-II & tier-III cities, thereby enabling more Indians to fly.

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'Violation of norms': KC Venugopal

Hardeep Singh Puri's remarks come after Congress MP KC Venugopal earlier in the day claimed that the Centre's violation of norms has enabled the Adani Group to operate and develop six airports in India. This comes after the Union Cabinet had recently approved the proposal for leasing out airports as a part of the public-private partnership (PPP). Moreover, the Adani Group has also acquired a 74% stake in Mumbai International Airport Limited (MIAL) under GVK Group's shareholding and control.

The Rajya Sabha MP also stated that apart from violation of norms, the Centre also ignored the advice of some of the ministries and other departments, paving way for the Gautam Adani-led group to win bids to operate six airports. Congress has therefore opposed the Centre's decision to 'monopolise the operation of airports'. 

"Changes in norms enabled Adani group to win all 6 bids," said KC Venugopal.

(Image: PTI))

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