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The Ministry of Civil Aviation had to face tough questions from Parliament’s Public Accounts Committee (PAC) on the implementation of the public private partnership (PPP) model at Mumbai International Airport.
The MPs in the committee particularly inquired about the land with the airport. It asked the Ministry why an earlier panel recommendation — that land surveys should be undertaken on priority, within six months, in PPP airports such as Delhi and Mumbai — was not implemented.
A panel member told BusinessLine that after signing the Operation, Management and Development Agreement (OMDA), the land holding was 1,875 acres, which was increased to 2,001 acres as per the resurvey held in 2006-07.
As per another report to Parliament in July 2011, the land holding was further increased to 2,001.36 acres. After signing the supplementary deed, in December 2011, the status was 2,001.73 acres.
“Thus, even after signing the OMDA and handing over the airport to Mumbai International Airport Ltd (MIAL), the total area of the airport land was not firmed up,” the member said.
Subleasing of landTo a PAC question on why the President of India’s land was allotted on a 30-year lease with a renewal clause to Housing Development Infrastructure Ltd (HDIL), a private company, Ministry officials said the OMDA provided for subleasing of land for commercial activities.
“The agreement with HDIL provided for subleasing of land for commercial activities to the party as a part of consideration co-terminus with the OMDA. No land transfer was envisaged,” the Ministry said in a written reply.
Airport developmentIt added that since restoration of encroached land is critical for an airport’s development as well as its security, the Airports Authority of India had issued a no-objection certificate to MIAL on June 25, 2007 for slum rehabilitation.
The senior member noted that many similar issues were discussed when the panel considered the CAG report on PPP in Delhi International Airport.
“It is unfortunate that the recommendations made by the PAC in 2013-14 are yet to be implemented. The compliance on the recommendations of PAC is still awaited,” he added.
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