THIRUVANANTHAPURAM: Disregarding the protest of the state cabinet which recently passed a unanimous resolution seeking to hand over the Trivandrum airport to Kerala government, the Airports Authority of India (AAI) has signed a letter of agreement with Adani Group for Trivandrum airport along with two other airports- Jaipur and Guwahati. With this the process for the formal takeover of the airport has begun after ending around two year-long uncertainty over its privatisation.
However, the AAI has reportedly sought an undertaking from the Adani Group which promises that it would abide by the outcome of the court ruling in connection with the privatisation of the airport. The state government and Airport Authority Employees Union have challenged the Union government’s decision to privatise the airport disregarding the protest of the state. If there is an adverse ruling against the private entity which takes over the airport, they will hand over the airport to AAI and the AAI will have to refund the amount paid by the private entity and also the investment it made in the airport.
In short, there is only one major hurdle left for the Adani Group to take control of the airport for 50 years. With the letter of agreement being awarded to the winning concessionaire, the group will have to sign a concession agreement with the AAI in two months. And once the concession agreement is signed, it has to pay the security deposit and take necessary clearances from the ministry of civil aviation in 45 days.
Next three months, the airport will have to be operated jointly by the AAI and private group. In the next phase, the private group will have to hire 60 per cent of staff in one year failing which the combined operation will be extended to three years, said an AAI source.Although the formal takeover of the airport has begun, it will not be easy for the private entity to take control of the airport. First, it will have to get a favourable court ruling which can be challenged in the apex court.
Next, the state government is insisting that it will not sign the state support agreement with the private group which is necessary for running the airport. So the chances for a prolonged legal battle cannot be ruled out, said sources.
In November 2018, the Union cabinet decides to privatise six airports in the country — Lucknow, Ahmedabad, Mangaluru, Jaipur, T’Puram and Guwahati
In February 2019, the Adani Group emerges as the highest bidder for the six airports