September 21, 2024

Report Wire

News at Another Perspective

Civl Aviation ministry denies Indian Express report on bidding for airports

4 min read

The civil aviation ministry has stated {that a} report printed by the Indian Express on fifteenth January alleging irregularities in Adani group profitable bid for operating 6 airports is factually incorrect and false. The minister has denied allegations made within the report that there have been objections to at least one firm profitable all six bids, saying that your complete course of was carried out in a clear method.
In the report printed on fifteenth January, the Indian Express had alleged that the Finance Ministry and Niti Aayog had placed on file objections concerning the 2019 airport bidding course of, however these objections had been over-ruled and Ahmedabad-based Adani group had made a clear sweep by profitable the bidding for all six airports: Ahmedabad, Mangalore, Lucknow, Jaipur, Guwahati and Thiruvananthapuram.
The report claimed that in the course of the bidding course of, the Department of Economic Affairs has proposed to include a clause to forestall a single bidder to win greater than two airports. Quoting minutes of assembly that Indian Express has claimed to have accessed, the report stated that the division had advised this because the six airport tasks are extremely capital-intensive tasks, and awarding them to totally different corporations will facilitate yardstick competitors.
The report stated that NITI Aayog additionally raised a distinct concern concerning the matter, saying {that a} bidder with out ample technical capability can jeopardise the undertaking and compromise the standard of providers that the federal government is dedicated to offer. The report additionally notes that earlier when Delhi and Mumbai airport operations had been privatised, GMR was not awarded each the airports regardless of rising as winner within the bids for each the airports.
Responding to the report printed per week in the past, the civil aviation ministry has launched an announcement at the moment dismissing all of the allegations made within the report. It says that the report is factually incorrect because the bidding course of was carried out in a aggressive and clear method by way of e-tendering portal of the Government of India, through which 25 corporations throughout the globe had registered and whole 86 registration had been obtained within the portal for six airports.
“Out of these registrations, 32 bids were received from 10 difference entities for 6 airports. As the bid process was completed transparently, none of the participating entity raised any concern or objection to the bidding process,” the ministry assertion stated.
The ministry knowledgeable that the bid parameter stipulated within the tender doc was ‘per passenger fee’ quoted by the bidder and the entity whose bid is highest by way of per passenger charge quoted can be declared as profitable bidder. As the bid for Adani Enterprises Limited was highest in all of the six airports, they group had gained all six bids. The tender course of of every airport was undertaken on particular person foundation, and the bid for a similar bidder was discovered highest in all of the six airports, due to this fact the identical firm gained all six airports, the assertion stated.
The ministry has additionally stated that the declare that the Finance Ministry and the NITI Aayog had raised objections to the method is wrong, as an Empowered Group of Secretaries (EGOS) Chaired by CEO NitiAayog with Secretaries of Ministry of Finance (Department of Economic Affairs, and Department of Expenditure), and Civil Aviation as Members was given the powers by the Union Cabinet to resolve on the issues exterior the purview of Public Private Partnership Appraisal Committee (PPPAC). Accordingly, the phrases and situations of the transaction of the PPP had been deliberated and determined by the EGoS in its assembly held on 17.11.2018 which had been agreed by the PPPAC in its assembly held on 11.12.2018. 
Responding to the sooner instance of placing restrictions in bidding for Delhi and Mumbai airports, the ministry stated that the Empowered Group of Secretaries took a acutely aware determination to not put any restrictions on the variety of airports to be bid for or to be awarded to a single entity contemplating the truth that these 6 airports are smaller in measurement and dealing with solely 9.5% of the passenger visitors, whereas Delhi and Mumbai airports accounted for greater than 45%  of the full passenger visitors in 2006 after they had been introduced beneath PPP and the choice to cap one airport to single bidder was crucial. 
The ministry additionally says that the quantum of passengers dealt with by the personal airport operators is extra essential and essential than the variety of airports dealt with by a single entity. The assertion additionally knowledgeable that EGOS determined to not stipulate prior airport expertise as a compulsory qualification to extend competitors and keep away from monopoly by these gamers having Airport expertise, who would have an edge over others.
Read- Has the govt. handed over the possession of Ahmedabad airport to Adani as alleged by Congress staff and supporters? Read the main points right here
Moreover, each the EGoS and PPPAC includes members from Ministry of Finance (Department of Economic Affairs & Department of Expenditure), NITI Aayog and the Civil Aviation ministry. Therefore, each the finance ministry and NITI Aayog had been concerned in finalising the contours of the bidding course of. “Therefore the statement that the views of Ministry of Finance and NitiAayog were ignored is factually incorrect and based on assumption”, the ministry stated, informing that views of each the entities are a part of the established process.
The ministry assertion additionally identified a factual error within the report which says that concession agreements for Guwahati, Jaipur and Thiruvananthapuram airports had been signed by AAI in September, whereas, it has truly been signed on 19.01.2021.
It was additionally identified by the civil aviation ministry that the identical allegations made within the Indian Express report had been made in numerous petitions submitted with Kerala High Court opposing the PPP mode of operation of AAI airports, which had been dismissed by the court docket.