Business Standard

Aai Likely To Seek Ground-Handling Bids Afresh

Image

BUSINESS STANDARD

The Airports Authority of India (AAI) is weighing the option of calling commercial re-bids for ground-handling services at major international airports from the nine companies that had been cleared earlier on technical grounds.

The option was discussed at the AAI's board meeting on July 31. It, however, ended inconclusively. At the meeting several members were of the view that the present bids if awarded to the shortlisted firms would attract an enquiry from the Central Vigilance Commission (CVC).

Sources said the AAI is likely to take up the issue again at its August 10 board meet.

Privatisation of the Rs 600 crore ground-handling services had run into rough weather after the AAI earlier decided to award the contract to nine companies, on the basis of the second-highest bid after the highest bidder Samarnath Aviation withdrew its bid, in violation of the CVC guidelines. The CVC guidelines clearly state that if the highest bidder withdraws its bid, the tenders should be called afresh.

 

AAI had issued conditional offer letters to the nine companies two and a half months ago. The companies were asked to obtain the Foreign Investment Promotion Board of India (FIPB) and home ministry clearances. The 60 day deadline for the approvals ended on July 15.

The cabinet secretary had also raised security-related concerns about some of these companies, as a result of which the civil aviation ministry had asked for security clearances by the home ministry for all of them.

One such company is Dnata, a 30 per cent equity participant in Interglobe, and has employees who are former Pakistan Air Force officers. Dnata was said to have offices in Karachi and other Pakistani cities and was perceived to be a security threat in an operation where security is paramount. The Dubai-based company had, however, refuted the charges.

AAI had not asked for a security check for Dnata because the company has already been handling ground services for the Emirates Airlines at various Indian airports.

The intelligence bureau in the home ministry is still conducting security checks for the companies including Interglobe, Cambata, Bhadra International, GroundGlobe and Worldwide Fleet to begin ground-handling services at five international airports at Mumbai, Delhi, Kolkata and Chennai.

The authority had also referred the issue to the CVC and though the commission has said the civil aviation ministry should take a decision on the issue in concert with the Cabinet secretary.

Don't miss the most important news and views of the day. Get them on our Telegram channel

First Published: Aug 06 2001 | 12:00 AM IST

Explore News