Will address employee concerns before PPP development of airports: AAI chairman

New Delhi: The Airports Authority of India’s (AAI) on-again-off-again plan to develop airports under the PPP model by inviting private parties has once again run into delays. This time, the AAI had proposed that four airports - at Chennai, Kolkata, Jaipur and Ahmedabad - be given to private developers. But vociferous protests (including a threat to strike work) by employees against any move to develop these airports under the PPP mode have lead AAI to rethink the entire process. [caption id=“attachment_2125547” align=“alignleft” width=“380”]  The Mumbai airport which was developed through the PPP model. PTI[/caption] It may not be scrapped all together but various issues are now being studied afresh and prominent among these are employee concerns. The AAI had earlier issued Request For Qualifications (RFQs) for these airports. Now, the due date for submitting applications has been pushed back by about two months to 26 May. AAI chairman RK Shrivastava said today that some HR issues need to be addressed alongside concerns raised by bidders on tariffs etc. “We are trying to fasttrack the RFPs. There are many issues related to HR, some decisions need to be taken……the government is seized of employees’ charter of demands and will address their problems,” he said. Employees have questioned the very rationale of going for PPP mode to develop airports, specially Kolkata and Chennai airports, where AAI has already invested large sums of money with disastrous consequences. The employees also want a guarantee that in case PPP model is finally adopted, they will only be sent on deputation to the new owner while continuing to be on the books of AAI. “We do not want a situation like the Delhi airport privatisation, where almost 2,000 employees had to return after the new owner took over. Then, AAI also transferred them to remote locations in the country, causing them hardships. We do not see any rationale for PPP model anyway,” a union representative said. The union had given a call for a nationwide strike earlier this month which was later averted on assurances that employees’ demands would be looked into. According to the RFQ documents available on the AAI website, it has already spent Rs 600 crore in constructing a new terminal building and in creating other aeronautical infrastructure at Ahmedabad airport. The AAI is inviting bids for operation, management and development of the airport through the PPP model and has said that the indicative project cost would be Rs 472 crore. The private developer will have to undertake both, air side and city side development. In the case of Jaipur airport, AAI has already invested Rs 200 crore in building a new terminal building and other aeronautical infrastructure. The indicative project cost for further development under PPP is Rs 500 crore. In Chennai, the investment till now has been a whopping Rs 2,400 crore and the indicative project cost under PPP is Rs 492 crore. In Kolkata, Rs 2,700 crore has already been spent and the indicative project cost is Rs 375 crore. According to officials of the Ministry of Civil Aviation, eight-nine private developers may come forward for placing bids. These include Mumbai airport developer GVK, Delhi airport developer GMR, Zurich Airports and the Adanis. But bidders also have tough questions and doubts over the PPP process. At a pre-bid meeting organised by the AAI earlier, participants asked the Authority to consider more number of bidders before awarding airport contracts. The AAI had earlier said that only top six bidders would be considered. Another demand of the prospective bidders is to extend the contract for these airports beyond 30 years. They are also apprehensive about other issues like mode of tariff determination.