After Kerala crimson flags airport privatisation plan, Puri says state bid didn’t qualify

Written by Pranav Mukul
, Liz Mathew
| New Delhi |

Updated: August 21, 2020 8:58:41 am

Kerala airport, Kerala airport privatisation, Kerala government, India news, Indian ExpressLast 12 months, the federal government had invited bids from personal gamers to function these airports for 50 years on a public-private partnership (PPP) foundation.

A day after the Union Cabinet cleared leasing out of three airports — Thiruvananthapuram, Jaipur and Guwahati — to Adani Enterprises, a political slugfest has began over the privatisation of the Thiruvananthapuram airport. Kerala Chief Minister (CM) Pinarayi Vijayan wrote to Prime Minister (PM) Narendra Modi, saying the “unilateral resolution” taken by the Centre was in opposition to the desires of the folks of the state.

Last 12 months, the federal government had invited bids from personal gamers to function these airports for 50 years on a public-private partnership (PPP) foundation. The Airports Authority of India (AAI), which presently manages these airports, in February 2019, introduced the bids acquired from 9 corporations for privatisation of six airports together with Lucknow, Mangaluru and Ahmedabad. Adani Enterprises outbid different corporations for all six of those airports.

On Thursday, Kerala’s Finance Minister Thomas Isaac stated Kerala authorities’s declare to managing the airport was rejected even after it provided to match Adani Enterprises’ bid. As per AAI, for the Thiruvananthapuram airport, it acquired a per-passenger price bid of Rs 168 from Adani, whereas Kerala State Industrial Development Corporation Ltd (KSIDC) bid Rs 135.


The Kerala authorities’s request to de-link the Thiruvananthapuram airport dates again to November 2018 — shortly after the Centre’s in-principle approval for privatising the six airports, senior Ministry officers stated. In a illustration made to the Centre, the Kerala authorities had cited its expertise in growth of greenfield airports at Kochi and Kannur, along with the contribution in type of land parcels at Thiruvananthapuram airport, and requested a committee for growth and operation of the airport via a particular objective automobile with the Kerala authorities as chief promoter, one official stated.

Following this, an Empowered Group of Secretaries was constituted and the Ministry of Civil Aviation requested the Kerala authorities to make a presentation earlier than the panel. Thereafter, Kerala prompt both switch of the airport to itself for operation and administration by forming an SPV, or supply the suitable of first refusal (RoFR) to the SPV of Kerala authorities in a bidding course of.

The secretaries’ panel then really helpful providing the state authorities SPV the RoFR as one of many choices, supplied that the SPVs bid fell inside the vary of 10 per cent of the best bid. An AAI official stated: “Since the quote of KSIDC was 19.64 per cent lower than the best quote of Adani, Government of Kerala was unable to learn of RoFR”.

“We hope that the Prime Minister and the central authorities perceive the Kerala folks’s resentment in opposition to handing the Thiruvananthapuram airport to a non-public agency. This airport was constructed and developed with the contributions made by the state authorities and the folks. We do really feel that the Prime Minister realises the significance of appreciating the stand taken by the state authorities and the most important political events within the state. Kerala authorities has bought the experience in operating the airports — each Kochi and Kannur worldwide airports are testimonies to it,” Vijayan advised The Indian Express.

In his letter to the PM, Vijayan wrote: “In my letter dated 10.06.2020, the request at hand over administration and operation of the Trivandrum International Airport to the SPV by which the State Government is the most important stake holder was reiterated. This has not been thought of and the current resolution has come even whereas the litigation on this regard is pending earlier than the Hon’ble High Court of Kerala as per the route of the Hon’ble Supreme Court”.

The AAI official cited above stated through the presentation made to the Empowered Group of Secretaries, the then Chief Secretary of Kerala talked about the letters given by civil aviation ministry in 2003, by which it “assured the state authorities might be consulted as and when a call to induct personal sector is taken.”

Responding to the allegations by the state authorities, Civil Aviation Minister Hardeep Singh Puri stated in a tweet: “Parallel narratives will be no match for information. A marketing campaign has been launched in opposition to the choice to privatise the Thiruvananthapuram airport … Winning bid quoted Rs 168 per passenger, KSIDC quoted Rs135 per passenger & third qualifying bidder was at Rs 63 per passenger. Thus, regardless of particular provision of RoFR being given to GoK, they might not qualify in worldwide bidding course of carried out in a clear method. They subsequently approached the Hon’ble Kerala High Court & Hon’ble Supreme Court. All these information can be found within the public area”.

Meanwhile, Congress MP from Thiruvananthapuram Shashi Tharoor backed the Centre. In a tweet Thursday, he stated: “GoK (Government of Kerala) selected to take part within the bidding,below guidelines they agreed, & after shedding within the honest course of,began questioning the very recreation that they had  chosen to play. What actually issues is the pursuits of the travellers of Thiruvananthapuram, not the govt.’s”.

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