Thursday, December 15 2005 17:56 Hrs (IST) - World Time -

New Delhi: Launching a scathing attack on the UPA Government over the restructuring and modernisation of Delhi and Mumbai airports, Left parties in Lok Sabha today (Dec 15, 2005) demanded scrapping of the entire bidding process with Civil Aviation Minister Praful Patel assuring that total transparency would be maintained.

Not convinced with the reply of the Minister to a call attention motion on the matter, the Left parties and Samajwadi Party walked out of the House.

Raising the issue, Mohd Salim (CPI-M) said the bidding process was improper as the legal, financial and technical consultants appointed by the Civil Aviation Ministry had 'conflict of interest'.

Salim, who was joined by his party colleagues Basudeb Acharia and Sunil Khan as well as CPI's Ajoy Chakraborty, alleged that while financial advisor ABN-Amro had major bidders like Reliance and GMR groups as its clients, legalconsultant Amirchand & Mangaldass also had Reliance as its client. He also said the global technical consultant AirPlan Australia had been 'taken over' by another group.

Chakraborty pointed out that among the bidders were ASA Mexicowho have almost the same ranking", he asked.

They demanded scuttling of the entire bidding process. In his reply, the Minister assured the House that these appointments were made "through the due processes and there is no arbitrariness involved". He asserted that the process had 'not been short-circuited'.

"The process of restructuring and modernisation of Delhi and Mumbai airports is based on transparent procedures. It has also gone through considerable consultation process. The best professional consultants were appointed by AAI after inviting bids for this purpose," Patel said.

Regarding the allegations made by the Left MPs on the links between the official advisors and the bidders, he said "many complaints have been received by us and we have referred them to various concerned agencies. The process is not complete as yet. It would go through various levels of Inter-Ministerial Group, Review Committee and the empowered Group of Ministers".

"I assure you that we will ensued. Allaying apprehensions of the Left parties, he asserted that AAI would 'neither be sold off, nor be privatised" as it was the 'torch-bearer' of running airports across the country.

There would be no job loss for AAI employees at these two airports, who would either be absorbed by the new joint venture companies or taken back by AAI after mandatory completion of three years in the JV firms.

The bidders would be given additional weightage if they give higher absorption rate for the workers, the Minister said, adding "this is a change in approach vis-a-vis that adopted by the erstwhile (NDA) Government".

He said the alternative proposal for modernising the two airports, submitted by AAI Employees Joint Forum, would be considered along with those of the other bidders. The FDI cap for these two airports had also been reduced from 74 per cent proposed by NDA to 49, Patel added.