New Delhi: The ministry of civil aviation is planning to reduce the concession period for the commercial contracts floated for operating food and beverage (F&B) outlets, retail units and duty-free shops at the Chennai and Kolkata airports. While earlier the plan was to award the contract for non-aeronautical facilities for a period of 10 years, the government is examining possibilities to bring it down to two years to leave a window for the private party which wins the management agreement to renegotiate terms for commercial ventures.
“We have to bid out the contracts for essential services such as F&B at least till the time the private player winning the management contract stabilizes operations. Instead of awarding the commercial contract for a 10-year period, we can bid it out for two years or five years. We are exploring the options”, informed a senior official in the ministry of civil aviation.
While the Airports of Authority of India (AAI) would take a final decision on the issue shortly, a reconsideration of the tenders floated for commercial contracts is underway as management agreements for the two airports are also being bid out simultaneously to private concessionaires.
18/10/13 Sharmistha Mukherjee/Business Standard
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“We have to bid out the contracts for essential services such as F&B at least till the time the private player winning the management contract stabilizes operations. Instead of awarding the commercial contract for a 10-year period, we can bid it out for two years or five years. We are exploring the options”, informed a senior official in the ministry of civil aviation.
While the Airports of Authority of India (AAI) would take a final decision on the issue shortly, a reconsideration of the tenders floated for commercial contracts is underway as management agreements for the two airports are also being bid out simultaneously to private concessionaires.
18/10/13 Sharmistha Mukherjee/Business Standard
