Civil Aviation Minister Hardeep Singh Puri has hit out against the Kerala government for opposing leasing out the management of Trivandrum International Airport to Adani Enterprises. Taking to Twitter, the Aviation Minister asked why Kerala is opposing handing over the Thiruvananthapuram airport to a private operator, when there are two successful PPP (public-private partnership) run airports in the state.
His remarks come after Kerala Chief Minister Pinarayi Vijayan wrote a letter to Prime Minister Narendra Modi opposing the Union Cabinet's approval to lease out the Trivandrum International Airport to Adani Enterprises under the PPP model for a period of 50 years.
"Kerala is the pioneer as far as airports under PPP are concerned. First PPP airport in India came up in Kochi in Kerala,” Puri tweeted.
The Kochi airport "is a successfully run airport" that handled 9.62 million passengers per annum in 2019-20 before COVID-19, he noted.
"In fact, it was during the UDF (Congress-led coalition) regime in Kerala that the foundation for Kochi airport was laid in 1994 and the airport was inaugurated in 1999 during LDF (Left-led coalition) regime," he said in a tweet.
Another very successful example of an airport operating in PPP mode is in Kannur, also situated in Kerala, he said.
"Now, Kerala Government, running two very successful airports in PPP mode, is opposing the handing over of Thiruvananthapuram airport under PPP mode," he said.
"It has come to my knowledge that an all-party meeting in Kerala has opposed the PPP model at Thiruvananthapuram airport," Puri said.
Adani Enterprises had won the rights to run six airports — Lucknow, Ahmedabad, Jaipur, Mangaluru, Thiruvananthapuram, and Guwahati — through the PPP model after a competitive bidding process in February 2019.
In July 2019, the Union Cabinet had approved the proposal for leasing out three airports — Ahmedabad, Mangaluru and Lucknow — to Adani Enterprises.
On Wednesday, the Union Cabinet approved the proposal for leasing out the other three airports.
"If Kerala Govt is against privatisation, then why did it participate in the bidding process? State government was given a fair chance & Right of First Refusal (RoFR) if their bid was within 10% below the range of highest bid. However, they bid 19.64 % below," Puri tweeted.
After losing the bid for the airport, the Kerala government then approached the Kerala High Court on this matter and the petition was dismissed in December 2019, Puri noted.
"Petitioners then filed a SLP (special leave petition) in Hon'ble SC. Apex Court remitted the matter back to Hon'ble Kerala High Court. There is no stay in the case either by Hon'ble SC or Hon'ble Kerala High Court," he said.
The Union Cabinet has given its go-ahead for awarding the Thiruvananthapuram airport to the private party subject to the outcome of the writ petition and in accordance with provisions of undertaking given by that party, he said.
"If the petitioners succeed and the outcome of litigation leads to annulment/cancellation of the bidding process then the Concessionaire will hand over the possession of the airport to AAI," the minister mentioned.
"They will be entitled to a refund of the amount paid to AAI and additional investments made in the assets," he said, adding that Adani Enterprises "will also not demand any damages from AAI".
The Centre-run Airports Authority of India (AAI) owns and manages more than 100 airports, including the one in Kerala's capital city.