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Govt defers bidding date for privatisation of four AAI-run airports

The govt has deferred the process as it wants to address human resources (HR) issues before the airports go into private hands, according to AAI chairman RK Srivastava.

Mail Today Bureau   New Delhi     Last Updated: March 24, 2015  | 09:35 IST
Govt defers bidding date for privatisation of airports
Photo: Reuters

The government has decided to defer the bidding date for privatisation of four Airports Authority of India (AAI)-run airports, including Kolkata and Chennai, as it wants to address human resources (HR) issues before the airports go into private hands, according to AAI chairman R.K. Srivastava.

AAI employees unions have been opposing privatisation of these airports on the ground that the move would lead to a further dip in AAI revenue and a massive retrenchment of manpower.

"There are many issues. There are issues relating to human resources. A concerted decision has to be taken on such issues. Whatever are the concerns of the employees, they would be addressed by the government," Srivastava told journalists here on Monday.

Srivastava said that whatever concerns the employees have would be addressed by the government adding that service conditions of employees should not be compromised.

The government is now contemplating to incorporate a 100-per cent manpower absorption clause for the bidders to pacify the union on the issue. Srivastava added that issues such as tariff fixation for these airports are also there but did not elaborate further.

"The AAI is trying to fast-track privatisation", he added.

The AAI, which had invited RFQ to hand over the management, operations and development of Kolkata, Chennai, Jaipur and Ahmedabad airports last year, had last week extended the due date for submitting RFQ from March 24 to May 26.

It had, however, not given any reason for pushing the deadline at that time.

Corporates, including the Tata and the Adanis and existing airport operators GMR and GVK besides some foreign players have shown interest in the these airports following the RFQ.

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