Thiruvananthapuram (Kerala): With the Centre deciding to hand over the first Airport of Kerala, in its capital city, to the Adani group as part of privatisation measures, the state government has now moved court.
The state government had moved the court after losing the operations of the Thiruvananthapuram airport in the tender procedures. The High Court had dismissed a writ petition filed by the state questioning the Centre's move allotting the tender to Adani group and another plea by the association of staff and workers at the airport against the move.
Appealing against the above, the state and other organisations had moved the Supreme Court, which quashed the High Court verdict. The bench presided by Chief Justice of India SA Bobde ordered that the plea be considered again. With that, the case is currently under the consideration of the High Court.
Meanwhile, the Centre decided to hand over the Airport to the Adani group based on the bidding process, even as the matter remains sub-judice.
At the same time, the State's move in the bidding process to run the Airport has given legal standing for the Adani Group. Kerala is to move the High Court pointing out that the Centre takes a hurried decision in Thiruvananthapuram Airport privatisation even as the case is sub judice.
The central government's move to privatise Thiruvananthapuram Airport started in 2019. Right from the beginning, the state government had opposed the idea. Thiruvananthapuram Airport is currently being operated in the land the state had acquired in different stages for its expansion and development and hence the state maintains that it has significant rights in running the airport.
Read:Reconsider decision of leasing out Thiruvananthapuram airport to private bidder: Kerala CM urges PM
The matter was presented by the state to Prime Minister Narendra Modi in person many times in earlier meetings. Kerala referred to its experience of running the Kochi-Nedumbassery International Airport and claimed its ability. The suggestion was to develop a company in the CIAL (Cochin International Airport Limited) model and the government directly carrying out the operations.
As there was no consensus between the Centre and the state in the contention related to the airport privatisation, the procedures got delayed further. Subsequently, the Centre decided to go for a bidding process.
The state government formed a company in the CIAL model, named Trivandrum International Airport Limited, and decided to take part in the bid. However, as the criteria had to be fulfilled, the state joined the tender process as Kerala State Industrial Development Corporation (KSIDC).
Adani group won the tender by quoting a higher bid value. As per the tender, for each passenger reaching Thiruvananthapuram Airport, Rs 168 would be given to the Centre. Kerala had quoted Rs 135.
When it failed to win the bid, the state clarified to the Centre that Kerala is ready to pay what the Adani group quoted. The state was in the process to acquire another 18-acre land to build one more terminal.
However, the Centre did not consider that suggestion. Thus, the tender was handed over to the Adani group for 50 years.
The state is also planning to politically fight the Centre's move to hand over the airport to Adani group. An all-party meet was held in this regard. The government decided that it would also pass a resolution in the Legislative Assembly against the airport privatisation move.
Meanwhile, the development has opened up a debate, with voices emerging both for and against the Centre's move.
Read:Kerala Covid doctors go to court over salary
Those who argue for it, say with the Adani group taking over the Airport, there would be tremendous development. Despite the many favourable factors, many services from Thiruvananthapuram are being stopped by the airlines. More than 500 such services have been cancelled in this manner.
Though Kerala Chief Minister took up the matter with different airline companies and the Airport Authority, there has been no change. With Adani group getting the operations of the Airport, things would change, believe those back the Centre’s privatisation move.
Adani group has also bagged the bid for Vizhinjam port operations. With the Airport near Vizhinjam also being operated by Adani, the investment possibilities would also rise, they opine. Adani Group plans to convert Thiruvananthapuram as a hub for international aircrafts to fill fuel as well.
Privatisation will badly hit the tax revenue of the governments, say those who are against the Centre's move. Adani group, a private company, is planning to gain profit running into crores through the operation of the airport. This huge profit can actually be the state and Centr's revenue. In 50 years, the group is estimated to make a profit of more than 10,000 crores calculating the user's fee alone. At least Rs 6,912 crore will be Adani group's profit in landing fees.
As per data, the footfall of passengers at the Thiruvananthapuram Airport is expected to rise. The Airport Authority gets Rs 168 per passenger at the airport. The amount is said to be the same for 50 years as per the tender contract. There is no provision or clause to increase the amount later in time, leading to a huge loss for the Airport Authority.
Read:Amazon honours Kerala man for his honesty
Through awarding tenders for duty-free shops and other shops on the premises and through visitors pass fee collection, vehicle parking fee collection, the Adani group will earn many thousands of crores.
The state earns Rs 90 lakh presently through vehicle parking fees, which will now be Adani group's profit.
More than 5,000 staff work at the airport in different departments. Eighty per cent of the staff are to be included by the Adani group as per agreement. However, the rest of the workers would lose their jobs.
Though the decision to hand over the Airport to Adani group has been made by the Centre, with the matter still under the consideration of the High Court, the takeover, if at all, would be delayed. If the Adani group wins against all the legal tangles with the state, it will have to face political opposition and protests.
Thiruvananthapuram Airport was inaugurated as the first Airport in Kerala during the rule of Sree Chitra Tirunal back in 1935. On November 1, an aircraft owned by the Tata company was the first to fly from the Airport in Kerala carrying airmail to Bombay (now Mumbai).
There were passenger services from Thiruvananthapuram to Goa, via Kannur, and return. Thiruvithamkur rulers then had small aircraft like a Dakota.
Read:Kerala tourism badly hit by Covid, says minister
An airport remaining shut for many hours together during a temple festival is rare among airports in the world. During the Arattu Ghoshayatra, as part of the Sree Padmanabhaswamy Temple Festival, the airport used to remain closed for hours. Starting from the Temple in Thiruvananthapuram city, the procession moved through the Airport crossing the Main runway to reach the Shanghumukham Beach.
An agreement on this was made only when Thiruvithamkur kingdom became part of India. Currently, the Airport remains shut twice a year as part of the temple festival.
On January 1, 1991, the then Prime Minister VP Singh officially upgraded the Thiruvananthapuram Airport to an International airport. Till then, International airports in India were only located in metro cities.
Currently, the airport operates in an expanse of 628 acres of land. Procedures are on to acquire and develop 18 more acres for further development. The Airport has two terminals; first for the domestic services and the second for the international services.
Thiruvananthapuram, which is considered to be the safest airport in South India has a runway length of 3,400 metres. Except Airbus A 380, all other aircrafts can land at the Thiruvananthapuram Airport. Its proximity to the city is also an advantage. The airport is situated just 5 km away from Thiruvananthapuram city.
Read:MoU between Life Mission and UAE based Red Crescent surfaces; ED looks into document
