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The Airports Authority of India is set to privatise the operation and maintenance of the Chennai airport.
The private player to be identified through competitive bidding will operate and maintain the newly developed airport on develop, operate, maintain and transfer (DMOT) basis. The indicative cost of the project is about Rs 1,000 crore. The AAI is to appoint a legal consultant to draft a concession agreement on the basis of the Model Concession Agreement to be provided by the AAI.
The consultant should also provide legal assistance and legal advisory services to AAI in the bidding process for the project.
The AAI has invited Request for Proposals to select the Legal Adviser through an open competitive bidding.
The AAI, a statutory authority of the Government of India responsible for managing the civil aviation infrastructure, recently completed construction of a new terminal building and other infrastructure at the Chennai airport at a cost of about Rs 2,000 crore.
In addition to the Chennai airport, the AAI plans to award three other airports to private players on the lines of the Chennai airport. The legal adviser will provide similar services for these airports that are likely to be awarded within a period of one year, said the proposal issued by AAI.
There is stiff resistance from employees’ union against privatising the Chennai airport. After spending nearly Rs 2,000 crore in creating a new terminal, why give it to private players, a union leader said. “It is all public money; they should have thought of a plan before spending so much,” he said.
Every day, the airport handles nearly 360 passenger flights and 30,000 passengers, he said.
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