Kerala: RTI records show KSIDC spent 2.3 crores in Airport bidding

Republic TV has accessed an RTI document filed by Activist K Govindan Nampoothiry who hails from Kochi. In his RTI query to Kerala State Industrial Development Corporation Limited (KSIDC), dated Dec 4, 2019, it states that in an attempt to win the Thiruvanthapuram Airport bid, KSIDC spent approximately Rs 2.36 crores for non-technical bidding.

What is shocking is that out of this expenditure the state government has to spend 1,57,18,954 rupees as a fee for submission of project deliverables to KPMG, a private accounting agency, and Rs 55 lakhs to a private law firm.

"Ironically, Chief Minister Pinarayi Vijayan who is strongly opposing privatisation of the airport has given 66 per cent of the exchequer's money to a private agency to secure the airport administration," says Govindan.

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Pointing out the double standards of the LDF government, the activist added, "At one end the state wants entrepreneurship to take off and at the same time, they are up arms against one of the most successful entrepreneurs in the country." He also pointed out how the state has to spend extravagantly to organise high profile business summits to attracts investments from entrepreneurs.

Using private consultants for state projects has proved to be a problem for the ruling government ever since many scams came out where private consultants were involved. Just two weeks ago, Ramesh Chennithala, had called out the Pinarayi Vijayan government corruption in various projects using private consultants as a shield. He had called out the corruption of the ruling left government through 'consultancy raj' while he accused him of it for construction of a new airport in Sabarimala. 

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While it is important to note that Pinarayi Vijayan in his letter to Prime Minister claimed the state government has proven experience in successful management and operations of airports in Kochi and Kannur, which the private bidder lacked.

Therefore, the question that is raised is what was the need of paying a large sum of money to a private consultant if the state had enough resources and talent in hand.

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