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Business News/ Politics / Policy/  Airport privatization: AAI extends bidding deadline to 26 May
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Airport privatization: AAI extends bidding deadline to 26 May

Deadline to submit so-called request for qualification (RFQ), which expired on 17 March, has now been extended

Meanwhile, airlines are worried that airport charges will rise, stretching their finances: airport charges have gone up by 346% in Delhi, 269% in Chennai, 385% in Kolkata and 164% in Mumbai over the last three years. Photo: Ramesh Pathania/MintPremium
Meanwhile, airlines are worried that airport charges will rise, stretching their finances: airport charges have gone up by 346% in Delhi, 269% in Chennai, 385% in Kolkata and 164% in Mumbai over the last three years. Photo: Ramesh Pathania/Mint

Mumbai: The Airports Authority of India (AAI) on Tuesday extended the deadline to apply for privatization of four airports by more than two months, without citing reasons.

In a policy shift, the AAI had invited Indian and international firms in January to develop airports in Chennai, Kolkata, Ahmedabad and Jaipur in public-private partnerships. The deadline to submit the so-called request for qualification (RFQ), which expired on 17 March, has now been extended to 26 May.

The tender notice on the AAI website asked potential bidders to submit applications to operate, manage and develop the four airports.

The January move was a turnaround for the government, which had decided against privatizing Chennai and Kolkata airports barely two months earlier, pointing to the 2,400 crore it had spent to upgrade each of these airports last year.

The decision to privatize the airports had invited the wrath of airport employees’ unions, who had announced a strike—since deferred—if the government went ahead with the plans. The unions fear that privatization will lead to job losses.

An AAI spokesperson confirmed that the deadline has been extended but did not spell out the reasons for the same.

He said there is no connection between the strike threat and the deadline extension.

Meanwhile, airlines are worried that airport charges will rise, stretching their finances. Airport charges have gone up by 346% in Delhi, 269% in Chennai, 385% in Kolkata and 164% in Mumbai over the last three years.

In 2013, the United Progressive Alliance government had floated a global tender to give management contract for airports at Chennai, Kolkata, Ahmedabad, Jaipur, Lucknow and Guwahati to private firms by 2014. However, the move did not take off.

In 2012, Comptroller and Auditor General (CAG) had alleged that the ministry of aviation favoured private firms managing the New Delhi and Mumbai airports. The Delhi airport is managed by a consortium led by GMR Infrastructure Ltd; the Mumbai airport is managed by GVK Infrastructure Ltd.

The centre has set an indicative cost for managing and developing the Chennai airport at 492 crore, which includes modifying the old international terminal building and offering a connectivity tube to the Metro railway line.

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Published: 18 Mar 2015, 01:00 AM IST
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