Records obtained by the Indian Express show that in 2019, the Finance Ministry and NITI Aayog had objected to the bidding process of six airports in the country that six airports should not be given to a single company.
New Delhi: The Union Finance Ministry and NITI Aayog had objected to the bidding process of six airports in the country in 2019, which was ignored and all these airports were handed over to the Adani Group.
It has been learned from the records obtained by the Indian Express that six airports should not be given to the same company.
Not only this, on August 31 last year, the Adani Group signed another agreement for a controlling stake in the country's second largest Mumbai airport, after which on 12 January, the Airport Authority gave its nod for the acquisition of the airport.
During the last financial year 2019-2020, there were 7.90 crore passengers traveling with Mumbai at seven airports Ahmedabad, Mangalore, Lucknow, Jaipur, Guwahati and Thiruvananthapuram. It is about one-fourth of 34.10 crore domestic air passengers.
In addition, Mundra Airport was also approved to be converted into a full-fledged international commercial airport.
Explain that commercial flights started in 2018 under the regional connectivity scheme of the central government. After the GVK deal, Adani also holds a controlling stake in the upcoming greenfield airport in Navi Mumbai.
The records showed that the Central Government's Public Private Partnership Appraisal Committee (PPPAC), under the NDA government's largest privatization program, called for bids for privatization of Ahmedabad, Lucknow, Mangalore, Jaipur, Guwahati and Thiruvananthapuram airports. The proposal was discussed with the ministry on 11 December 2018.
The minutes of this meeting are with the Indian Express, according to which, during the discussion, a note from the Ministry of Economic Affairs stated, 'The project at these six airports is highly capital intensive, so it is suggested that excessive financial risk And keeping in mind other matters, more than two airports should be given to the same bidder.
The Finance Ministry note written on 10 December 2018 cited the Delhi and Mumbai airports, where both airports were not handed over to GMR despite being the only qualified bidder.
During this, citing the privatization of power distribution in Delhi, it was said that in the matter of privatization of Delhi power distribution, the city was divided into three zones and they were subordinated to two companies.
According to the minutes of the meeting, there was no discussion on the objections of the Finance Ministry in the meeting. On the same day, in the Finance Ministry's note, the NITI Aayog also raised a separate concern regarding the auction of airports.
The memo prepared by the PPP stated, 'A bidder who lacks sufficient technical capacity may endanger the project and compromise the quality services for which the government is committed.'
In response, Finance Ministry Secretary SC Garg said that the Empowered Group of Secretaries has already decided that prior experiences will not be made the basis of bidding.
Let us know that one year after winning the bid, the Adani Group had signed the Concession Agreement at the Ahmedabad, Mangalore and Lucknow airports.
Emails were sent to the Adani Group and the Civil Aviation Ministry in this regard but no response was received. Sources associated with the Adani Group said that the bid was in accordance with the set rules and due process and norms.
{ With input from news agency language)
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