The Kerala government did not qualify in Thiruvananthapuram airport’s bidding process that was carried out in a transparent manner, Civil Aviation Minister Hardeep Singh Puri said on Thursday. The Kerala government has opposed the Union Cabinet’s approval on Wednesday to lease out the Thiruvananthapuram airport to Adani Enterprises through public-private partnership (PPP) for a period of 50 years.
Talking about the airport’s 2019 privatization process on Twitter, Puri said, “Winning bid quoted Rs 168 per passenger, KSIDC (Kerala State Industrial Development Corporation) quoted Rs 135 per passenger and third qualifying bidder was at Rs 63 per passenger.”
Per passenger, the fee was the criteria for the bidding process that was conducted in early 2019 for six airports – Lucknow, Ahmedabad, Mangalore, Jaipur, Guwahati, and Thiruvananthapuram. Adani Enterprises turned out to be the highest bidder for these six airports.
Before the bidding process, the Centre and the Kerala government had agreed that if the KSIDC’s bid comes within the 10 percent range of the winning bid, it would be awarded the airport, Puri said.
However, since the difference between Adani’s bid and KSIDC’s bid was 19.64 percent during the bidding process, the former was qualified as the winner.
“Thus, despite the special provision of RoFR (right of first refusal) being given to GoK (Government of Kerala), they could not qualify in the international bidding process carried out in a transparent manner,” Puri stated.
The Kerala government on Thursday called an all-party meeting to discuss and protest against the Centre’s decision to hand over the management and operation of the Thiruvananthapuram airport to the Adani group.
“Thiruvananthapuram airport privatized to Adani rejecting the claim of Kerala govt, even after offering to match Adani’s rate. PMO’s promise to accept the Kerala proposal broken. People of Kerala will not accept this act of brazen cronyism. #Airportprivatisation,” State Finance Minister Dr. Thomas Isaac tweeted on Thursday.
In February 2019, Adani Enterprises was declared the winner for all six airports as it was the highest bidder. In July 2019, the Union Cabinet approved the proposal for leasing out three of them – Ahmedabad, Mangalore, and Lucknow – to the Ahmedabad-based company.
Eight months after the Cabinet approval, Adani Enterprises signed the concessionaire agreement with the Airports Authority of India (AAI) on February 14 this year for operation, management, and development of these three airports.
In June this year, the AAI gave three more months to the Ahmedabad-based company to take over the management of these three airports due to the COVID-19 situation. This means the deadline for takeover has been pushed from August 12 to November 12.