Six airports leased out through competitive, transparent process: Civil Aviation Minister Naidu

New Delhi, Dec 5 (PTI) Civil Aviation Minister K Rammohan Naidu on Thursday said six airports were leased out to the Adani group through a thorough, competitive and transparent process.

State-owned Airports Authority of India (AAI) has leased out six airports -- Lucknow, Ahmedabad, Mangaluru, Jaipur, Guwahati and Thiruvananthapuram -- to the Adani group.

While mentioning about the leasing out of these airports, Trinamool Congress leader Saugata Roy said in the Lok Sabha that NITI Aayog and the Department of Economic Affairs (DEA) were of the view that two airports should not be given to the same entity.

Naidu, however, said there was no fact in the member's statement.

These are wild allegations and an empowered group of secretaries, headed by NITI Aayog CEO, where DEA secretary was also a member, was constituted, he said.

A thorough process was followed for the leasing out of the airports, he said, adding when they (NITI Aayog CEO, DEA secretary) were members of the group, where does the point arise that they had opposed the same.

"A thorough, competitive, transparent process was done for leasing out of these airports. Whatever the (TMC) member is saying is a wild allegation...there is no fact in all of that," Naidu said.

In a written reply, the minister said that as per the present valuation and after truing up by the AERA, the investment made by AAI at these six airports prior to handing over them to the PPP concessionaire is approximately Rs 5,260 crore including the capital work in progress and Regulated Asset Base (RAB) in aeronautical and non-aeronautical assets.

"To maintain the required performance standards, the AAI continues to incur capex on these airports so as to meet passenger needs optimally. The AAI gets this capex back in the form of upfront payment from PPP partner," he added.

AERA refers to Airports Economic Regulatory Authority and PPP stands for Public Private Partnership.

As per the provisions of the concession agreements for the six airports, employees (holding the position of assistant general manager and below) had continued the services at the respective airport for the period of one year followed by another term of two years (deemed deputation period).

"During this period of three years, the concessionaire offered employment to the minimum of 60 per cent of the employees on the same terms and conditions of service currently they were governed in AAI.

"The employees to whom the offers of employment were made by the concessionaire had the option to accept the offer or decline. Those employees who accepted the offer of employment, have resigned from the services of AAI and joined the concessionaire," the minister said.

He also said those employees who declined the offer of employment made by the concessionaire have continued to be the employees of AAI and redeployed after completion of deemed deputation period by AAI where the concessionaire bears their employment cost till their separation from AAI. PTI RAM KVK KVK