Kerala has vehemently opposed the move to hand over the Thiruvananthapuram international airport to Adani Enterprises Limited (AEL) that has emerged as the highest bidder for managing, operating, and developing the infrastructure of the AAI-managed airport for the next 50 years.
Chief Minister Pinarayi Vijayan has urged Prime Minister Narendra Modi to intervene to suspend the handing over the airport to the AEL of the Adani Group and to entrust the airport to the Thiruvananthapuram International Airport Limited (TIAL) floated by the government under the KSIDC for operating the airport.
In a letter to the Prime Minister on Thursday, Mr. Vijayan said this would protect the interests of the Centre and the State and would lead to the development of the airport with government support.
Resentment is brewing over the move to hand over the airport to the AEL, which has emerged as the highest bidder for the six AAI-managed airports to be privatised. “We will not be able support the private group for operating and developing the Thiruvananthapuram international airport,” the Chief Minister said.
The 23.57 acres of land was given for free to the AAI for developing the airport in 2005 on condition that the cost of the land would be converted into government equity if a company is formed to manage the airport. The Chief Minister pointed out the assurance of the Union Civil Aviation Secretary in 2003 that the State would be consulted and a special purpose vehicle would be set up with government participation if the airport was privatised.
Kochi, Kannur airports
Mr. Vijayan also invited the attention of the Prime Minister of the experience the State has in managing the Cochin and Kannur international airports. The State’s request to hand over the airport to the SPV or for participating in the bidding process with Right of First Refusal (RoFR) was not approved by the Civil Aviation Ministry. The RoFR was finally limited to 10%.
The decision that the concessionaire need not have prior experience is surprising, he said. Since the AEL has emerged the highest bidder for six airports, it has raised suspicion that infrastructure handling was the sole criteria. The Chief Minister has also written to Union Civil Aviation Minister Suresh Prabhu in this regard.