Business Standard

CITU flays govt move to privatise 15 airports

Image

Press Trust of India New Delhi
The Centre of Indian Trade Unions (CITU) today questioned the government's reported move to privatise 15 major airports modernised by Airports Authority of India through public-private-partnership mode, saying the government cannot "fritter away" public asset.

"It is surprising that government has selected those airports to hand over to private hands which have substantial commercial activities and earn higher revenue, and already huge investments have been made by the Government through AAI for renovation and modernisation," CITU General Secretary Tapan Sen said.

The process would start with inviting global bids for six airports Kolkata, Chennai, Ahmedabad, Jaipur, Lucknow and Guwahati, he said, adding the AAI has spent Rs 3,700 crore in modernisation and renovation of Kolkata and Chennai airports, and also spent thousands of crore of public money for modernising other 13 airports.
 

"And now, handing over the management and control of those airports to private hands, both domestic and foreign, leaving Government-owned AAI to only earn rent or revenue tantamount to transferring of huge public asset virtually free of cost to private hands," Sen said.

"Is the government entitled to fritter away public asset like that?"

He ridiculed Civil Aviation Ministry's argument in support of its "retrograde move" that such an exercise would improve the management of the airports.

"Will those wise people say which agency in the country is having more exposure and experience of managing and running airports other than the AAI?" he said.

Raising suspicion over the government's game plan, Sen raised doubts whether "there was a game plan to hand over the management and control of such vital infrastructure, involving national security like airports, to foreign players?"

"The Ministry officials have also reportedly stated that they were not being allowed to work at a fast pace and hence let the private players rule on public asset and earn fortune without making any capital investment," Sen said.

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

First Published: Jul 04 2013 | 8:55 PM IST

Explore News