Guidelines states an in-principle clearance by the committee is mandated before inviting expression of interest from prospective investors
It's not just the HR matters but also the lack of in-principle nod of the Public-Private-Partnership Appraisal Committee (PPPAC) that is hampering the privatisation process of the four airports undertaken by the ministry of civil aviation, said an Airports Authority of India (AAI) source.
As per the government rule, approval from this committee formed for any PPP project is crucial before inviting expression of interest from the prospective investors.
The government has already floated the request for qualification (RFQ) for operation, development and management of Chennai, Kolkata, Jaipur and Ahmedabad airports.
"We had raised this issue (nod from the PPPAC before inviting expression of interest) with the ministry in our last meeting (about two months back) and were told that it would be taken in due course of time. How can they move ahead with the bidding process without the committee's in-principle clearance," said a source in the state-owned airport firm AAI, who requested not to be named.
The PPPAC consists of secretaries from departments of economic affairs, planning commission, expenditure and legal affairs, along with the secretary of department to which the project is related to.
The source said, in the case of the privatisation of the Chennai, Kolkata, Jaipur and Ahmedabad airports, which would be done through the PPP mode, such an in-principle clearance has not been taken.
This is in violation of the PPP guidelines, which states: "The ministry concerned may develop individual proposals using legal, financial and technical consultants and also avail the benefit of an inter-ministerial consultative group, if necessary. The proposal as formulated by the ministry would be considered by the PPPAC for in principal clearance before inviting expressions of interest from prospective investors".
Meanwhile, the Airports Authority of India Employee Union (AAIEU), which is opposing the airport privatisation of these four airports, has raised an objection with the government for not taking its opinion on the matter.
Balraj Singh Ahlawat, general secretary of AAIEU, said under Section 40 (1) of Airports Authority of India Act, 1994, which relates to the power of the central government to issue directions, AAI has to be given an opportunity to express its views before any direction issued to it.
"The authority (AAI) has not been consulted on the issue at all," he said.
The subsection of AAI Act, 1994 says; "provided that the Authority shall, as far as practicable, be given opportunity to express its views before any direction is given under the sub-section".
Ahlawat said the AAIEU does not want these four airports to be given to the private operators.
"We have expertise to run the airport and given a freehand, we can earn as much revenue as private operators can. Just like we have developed and modernised these airports, we can run it too," he said.
In the meantime, the second conciliatory meeting of representative of ministry, AAI management and AAIEU officials with Chief Labour Commissioner (CLC), which was slated to be held Wednesday, has been postponed to March 30.
Ahlawat said the CLC has asked for age profile of the AAI employees, who would be affected by privatisation of the four airports. He said a large number of the staff is expected to retire by 2017-18.
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
)
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
)
){kind=small}
){kind=small}
)
)
)
)
)
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}