TLI Staff
New Delhi: Sticking to their demand that no airports be privatized, employees union of Airports Authority of India (AAI) has stated that the ongoing move to give away profitable airports to private companies would create an identity crisis for the state-run agency.
The union leaders in a meeting with top management appealed to put a brake on the ongoing exercise as this would affect growth of the sector. In a veiled threat, the unions have also said that that government’s reckless move could unnecessarily create industrial unrest.
“This monopolistic approach must be avoided and a feasible solution could be evaluated for the betterment of the industry,” Airports Authority Employees Union (AAEU) Convener Balraj Singh Ahlawat told the AAI management in a meeting on October 17.
The unions toughened their stand even as AAI Chairman Anuj Aggarwal maintained that the entire bidding process for leasing airports has been done in a transparent manner. He informed the union leaders that the transaction for the six airports had been carried out with due recommendation of Public Private Partnership Appraisal Committee (PPPAC).
“The process of obtaining security clearance from the appropriate authority is underway by the successful bidder viz. Adani Enterprises Ltd for the three (03) airports of AAl,” as per the minutes of the meeting issued on Wednesday.
The caretaker Chairman is learnt to have stated that operations of select airports on PPP will result in enhanced revenue for the AAI. The revenue so earned will be deployed to build airports in smaller towns and cities. This will boost job creation and infrastructure in tier-II and tier-III towns.
As per AAI management, government in its right earnest has given greater emphasis for investment led growth in the recent Budget 2019-20 wherein asset monetization and recycling of asset has been stressed for augmenting infrastructure investment particularly in airports.
Some of the representatives, TLI spoke to said that while government argues that AAI will get more revenue after PPP, it does not say that most of this revenue would be taken away by the government in the form of dividend and special dividend.
“The airports which will be built in tier-II and tier-III towns would probably be viable after 15-20 years so how would AAI commercially function?” asked an employee.
The Joint Forum of Unions and Associations of AAI has in the meantime escalated their fight to stop government from privatizing profit-making airports. It has submitted a memorandum to the management for necessary action.
The government has already bid out six AAI airports and has kick-started the process to privatize another half a dozen airports.
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