Updated: October 19, 2020 5:18:26 pm
An Air India plane at Thiruvananthapuram Airport in Kerala. (Photo / PTI Archive)
In a setback for the Kerala government, the High Court on Monday dismissed petitions filed against the privatization of Thiruvananthapuram airport.
The state government had filed an application in court against the central government’s decision to lease the operation, management and development of the Thiruvananthapuram airport to Adani Enterprises for a period of 50 years. Thiruvananthapuram International Airport was among six such facilities for which the Adani group had won tenders for leasing and maintenance in February 2019.
The bench of judges K Vinod Chandran and TR Ravi rejected multiple petitions filed by the Kerala government and the Kerala State Industrial Development Corporation (KSIDC) against the privatization initiative. The court agreed with the Center’s argument that the decision to hand over the airport to the company was based on policy and had the backing of the central cabinet. The court added that it cannot agree with the state government’s claim that it deserved a preference for having completed the land acquisition process.
Participating in the bidding process and then rating the same process incorrect cannot be justified, the bank said, dismissing the state’s argument that the bidding process was designed to suit Adani.
The Kerala government had argued in court that the transfer of an airport built on government land to a private company was against the interests of the state and that it had not quoted a higher rate per passenger because it took into account the interests of the public. passengers. The state said it was ignored even when the prime minister agreed to match Adani’s offer of 168 rupees per passenger for airport maintenance.
Kerala had participated in the bidding process through a ‘special purpose vehicle’ that was given the right of first refusal or a provision to match the winning bid if its listing fell within the 10% range of the highest bidder. However, KSIDC’s offer, on behalf of the Kerala government, was 135 rupees per passenger compared to Adani’s 168 rupees, down 19.64%, making it ineligible to exercise the provision.
After the Union Cabinet ratified the airport lease to Adani Group, the Kerala government had sent two letters to Prime Minister Narendra Modi, indicating that the state would not cooperate in the implementation of the decision. The opposition Congress also joined the protest. Kerala also said that its claim to run Thiruvananthapuram airport was rejected by the Center even after it offered to match Adani’s offer.
In addition to Thiruvananthapuram, Adani has earned the rights to manage five other airports: Lucknow, Ahmedabad, Jaipur, Mangaluru and Guwahati. Adani Enterprises outbid eight other companies in the process, including GMR Airports, Kerala State Industrial Development Corporation (KSIDC), Cochin International Airport Ltd and Zurich Airport, to obtain the rights in February 2019.
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