The privatisation of the Chennai airport has been deferred pending the formation of a new government at the Centre, according to airport sources.
It was expected to be finalised by April but was deferred by a month due to the Lok Sabha election. “Now, it is has been postponed indefinitely till further orders,” said an airport official who did not want to be named.
The request for the qualification process to operate, manage and transfer of Chennai airport through private-public-partnership started on September 3. However, the bidding was postponed a number of times due to delay in finalising the Concession Agreement.
The employees union, which is opposing the move, says it hopes the government reconsiders the decision to privatise the airport. The union members question the need to privatise after spending over ₹6,000 crore on modernising Chennai and Kolkata airports. Their concern is also that nearly 5,000 workers will be made redundant in the process.
Companies such as GVK, Reliance and GMR Airports have shown interest in bidding for the Chennai airport.
Sources say if the new government goes ahead with the privatisation plan, the process will be completed by the year end. Once the draft Concession Agreement is finalised, it needs to get the clearance of the Planning Commission, Airport Economic Regulatory Authority and the Ministry of Civil Aviation, sources said.
Every day nearly 30,000 passengers pass through the Chennai airport.