MDMK against Centre's move on pvt parties stake in airports

The move will reduce the equity of AAI in various forms, says MDMK

MDMK leader Vaiko today opposed Centre's move to allow private parties to pick up 100% stake in Chennai and Kolkata airports, urging Prime Minister Manmohan Singh to "do away" with the proposal and protect public interest.

In a letter to Singh dated September 11, Vaiko said he had learnt that "Government is proposing to privatise Chennai and Kolkata airports and hand them over to private players either on PPP or JVC, thus reducing the equity of AAI in various forms."

Airports Authority of India (AAI) had undertaken a lot of projects of international specifications abroad and completed them 'creditably' as per international standards, bagging ISO certification for such projects, he said.

Vaiko noted that AAI was a mini-ratna PSU having a good track record of continuous upgradation of equipment and state-of-the-art technology for safe aircraft operations.

Besides, it has won many global awards, he said adding without excellent skill, technology and manpower, it would not have been possible for AAI to achieve all the above laurels.

"While this being the case, why should Government give Chennai and Kolkata airports in a platter to private enterprises even after AAI spending enormous amount of money for modernizing these airports," he said.

He recalled the assurances by PMO that further modernization of airports in India will be entrusted only to AAI and that no existing airport will be closed at the cost of greenfield airport.

"In this connection, I wish to bring to your kind notice on the loss of Rs 1.63 lakh crore in the similar earlier JVC exercise in respect of Delhi airport which was also pointed out by the CAG. Therefore in the light of the above facts and reasons, I would request you to do away with the said proposal to privatise Chennai and Kolkata airports and protect the public interest," he said.

Government had last week launched the process of allowing private parties to pick up 100% equity stake in operation and management of Chennai and Lucknow airports through public-private partnership (PPP) mode, inviting Request for Qualification (RFQ) for these two airports.

Four more airports at Kolkata, Guwahati, Jaipur and Ahmedabad would be taken up shortly for operation, management and development on PPP basis, government had said.