Friday, July 12, 2019

AAI not looking at re-bidding for Jaipur, Trivandrum, Guwahati airports

The Airports Authority of India is not looking at the re-bidding of three state-run airports of Jaipur, Trivandrum and Guwahati, sources close to the development told CNBC-TV18, adding that the Cabinet may take a decision on the airports after some issue are resolved.

On July 3, the Union Cabinet approved the proposals for leasing out three major airports of Ahmedabad, Lucknow and Mangaluru for a period of 50 years but did not take up the remaining three airports, leading to confusion whether they will be put up for re-bidding again.

"There is no question of re-bidding as of now. There are some court cases with regard to Trivandrum and Guwahati and in the case of Jaipur, the state government has asked for some minor clarification. We are hopeful that these issues will be resolved within the next one month and then it can be taken up by the Cabinet," a person aware of the development told CNBC-TV18 on condition of anonymity.

While the validity of the bids is currently till July 31, it can be extended by a maximum period of three months if the need arises, sources added.

The state of Kerala and the Kerala State Industrial Development Corporation (KSIDC) had filed a case in the High court early this year to prevent the airport being handed over to Adani Enterprises.

A Public Interest Litigation was also filed by some people in Gauhati High Court opposing the Centre's decision to privatise the state airport.

KSIDC, Adani Group and GMR airports had bid for Trivandrum airport. However, Adani Group’s bid at Rs 168 per passenger was higher than that of KSIDC’s Rs 135 and GMR’s Rs 63.

The Airports Authority of India is likely to award the three airports of Lucknow, Ahmedabad and Mangalore airports to Adani Group soon, possibly in the next 5-7 days, sources added.

Early July, CNBC-TV18 exclusively reported that the civil aviation ministry has moved a revised Cabinet note on the privatisation of six state-run airports of Jaipur, Lucknow, Trivandrum, Mangalore, Guwahati and Ahmedabad.

Under a two-stage tender process, which concluded late February, Adani Group emerged as the highest bidder for all six airports, quoting the highest per passenger fee to be paid to AAI on a monthly basis.
12/07/19 Anu Sharma/CNBC TV18

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