The Hindu Business Line : Govt to seek annual fee from successful bidders of non-metro airports

New Delhi, May 11 In a departure from the method followed for modernisation of Delhi and Mumbai airports, the Government will seek an annual fee which will accelerate by a fixed per cent every few years from the successful bidders selected for modernisation of 24 non-metro airports.

In Delhi and Mumbai, the Government had decided on the successful bidders on the basis of the highest revenue share offered.

This led to allegations that the method was flawed and that the Government did not pay enough attention to details while deciding on the successful bidders.

Official sources said another reason for deciding on the revenue share route for the non-metro airports was to avoid a situation where the winning bidder set up a number of subsidiaries and refuse to share the incomes from them with the Government.

The development process is expected to be set in motion soon with the Government planning to issue the request for proposals for the two airports at Udaipur and Amritsar early next week.

At the moment, the Government plans to award the contract for all the 24 airports within six months of awarding the contracts for Udaipur and Amritsar, officials said.

The non-metro airports, which will be developed include those in Tiruchi, Visakhapatnam, Thiruvananthapuram, Madurai, Mangalore, Agatti, Coimbatore, Patna and Port Blair.

At these airports, the Government will ensure that passengers are not saddled with high costs by stipulating the airport passenger entry fee and the car parking charges that the new operator can charge.

The Government will also notify how these tolls will escalate, thereby, ensuring that the operators’ revenue stream also does not suffer.

While the operator will have a free hand in the terminal building, the Government has mandated that there be vending machines for both food and drinks to ensure a low-cost option for those not wanting to pay huge amounts for sitting and eating or drinking in an airport restaurant, officials said.

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