The home ministry has objected to firms with foreign equity holdings or technical partnerships being allowed to carry out ground-handling services at international airports. Several international airlines and firms with foreign equity stakes, like Cambata, have been offering services at Indian airports for several decades.
Top government officials told Business Standard that the home ministry has written to the ministry of civil aviation expressing reservations about granting security clearances to two of the five private sector parties which have been awarded tenders for ground-handling operations by the Airports Authority of India (AAI). The two firms that have been denied security clearances by the ministry are Cambata and Interglobe.
The aviation ministry is, however, likely to write back to the home ministry opposing the rejections. The policy on airport infrastructure approved by the Cabinet in 1997 provides for firms with foreign technical tie-ups and foreign equity holdings in the form of joint-ventures to offer various services at airports, the officials said.
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The ministry of civil aviation had earlier made the offer letters awarded to the five firms for privatisation of the Rs 600 crore groundhandling market in India, conditional to the issue of security clearances by the home ministry. It had made it clear to the parties that non-fulfillment of the condition within 60 days from issue of the offer letter would mean cancellation of their tenders.
Five firms Interglobe, Cambata, Bhadra International, GroundGlobe and Worldwide Fleet were awarded offer letters by AAI on May 11 to begin ground-handling services at five international airports in Mumbai, Delhi, Kolkata and Chennai.
The new condition was imposed by the aviation ministry on June 14 after the Cabinet Secretary raised security-related concerns about one bidder -- Dnata, a 30 per cent equity participant in Interglobe with employees who are former Pakistan Air Force officers. Dnata is reported to have offices in Karachi and other cities in Pakistan and was perceived to be a security threat in an operation where security is paramount.