Saturday, June 13, 2020

GMR offered low revenue, model unviable: MIL to HC

Nagpur: In reply to allegations that the Nagpur airport modernization tender was cancelled arbitrarily without any notice, the Mihan India Ltd (MIL) informed the high court here that the Civil Aviation ministry wasn’t satisfied over the revenue sharing model proposed and had questioned the financial viability of the deal.
A division bench of Justices Atul Chandurkar and Amit Borkar on Friday adjourned the hearing for four weeks after petitioners’ counsel Charuhas Dharmadhikari sought time to file reply on MIL’s contentions.
The petitioners — GMR Airports Ltd and GMR Nagpur International Airport Ltd — prayed for quashing MIL’s letter issued to them on March 19, annulling the airport bidding process without awarding the contract.

In an affidavit, MIL senior airport director Abid Ruhi stated that even the comptroller and auditor general (CAG) had raised an audit inquiry on the financial viability of GMR’s bid.

“The petitioners’ offer at 14.49% of the gross revenue is extremely low and financially unviable. It would have caused tremendous loss to the exchequer. The airport upgradation must lead to increase in revenue for the government. Therefore, the tender process was annulled within its right,” the affidavit said

Adding that the MIL was contemplating floating a fresh tender, Ruhi said the financial model would be different from the one proposed in earlier process. “The government must earn better revenue and there should be minimum loss to the public exchequer. The petitioners’ can’t question the cancellation but can participate in fresh tender process,” he said.
13/06/20 Vaibhav Ganjapure/Times of India
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