Why did Kerala bid for airport privatisation and later red flag, asks Hardeep Puri

In a political response to Kerala opposing privatisation of its Thiruvananthapuram airport, union Civil Aviation Hardeep Singh Puri said that if the state government is against privatisation, then why did it participate in the bidding?

Kerala government lost out during the bidding process that was finally won by Adani group.

"The state government was given a fair chance and right of First Refusal (RoFR) if their bid was within 10% below the range of highest bid. However, they bid 19.64 % below. Then they approached Kerala High Court which dismissed the petition in Dec 2019. Petitioners then filed a SLP in Supreme Court. Apex Court remitted the matter back to Kerala High Court. There is no stay in the case either by SC or Kerala High Court," the minister said.

He added that the Union Cabinet has given its go-ahead for awarding the airport to the private party subject to the outcome of Writ Petition and in accordance with provisions of undertaking given by the Concessionaire.

"If the petitioners succeed and outcome of litigation leads to annulment/cancellation of bidding process then the Concessionaire will handover the possession of airport to AAI. They will be entitled to refund of amount paid to AAI and additional investments made in the assets. The Concessionaire will also not demand any damages from AAI.
Here it should be borne in mind that these airports will come back to AAI after the lease period of 50 years,' Mr Puri said.

The minister clarified that sovereign functions like Customs, Security, Immigration, Plant and Animal Quarantine, Health Services, Communication and Navigation Surveillance / Air Traffic Management services will continue to be provided by the Government agencies.

The minister said Kerala is the pioneer as far as airports under Public Private Partnership are concerned as first PPP airport in India came up in Kochi followed by another in Kannur.

"In fact, it was during the UDF regime in Kerala that the foundation for Kochi airport was laid in 1994 and the airport was inaugurated in 1999 during LDF regime. Now, Kerala Government, running two very successful airports in PPP mode, is opposing the handing over of Thiruvananthapuram airport under PPP mode. It has come to my knowledge that an all-party meeting in Kerala has opposed the PPP model at Thiruvananthapuram airport," he said.