Mumbai airport project delays haunt GVK
The government has expressed serious concern over loss of revenue due to delay in launching duty-free outlets at the Mumbai airport.
By Nirbhay Kumar, TNN |
NEW DELHI: The government has expressed serious concern over loss of revenue due to delay in launching duty-free outlets at the Mumbai airport. It has questioned the GVK Group-led Mumbai International Airport (MIAL) over the loss of revenue to the Airports Authority of India (AAI) on account of delay in several projects such as duty-free shops.
���We have written to MIAL for the revenue loss due to delay in the duty-free retail project,��� a senior AAI official said. AAI holds 26% stake in MIAL and is entitled to get 36.7% revenue from the airport.
MIAL, which is modernising the Mumbai airport, had awarded a mega contract for duty-free outlets to a joint venture between ITDC and Aldeasa of Spain. However, it failed to take off. Then the contract was offered to DFS, which is yet to begin its operation. DFS was expected to launch the much-awaited duty-free shops by the end of January. Passengers using the airport for international flights are also denied of duty-free shopping facilities due to the delay.
DFS, the second-highest bidder after ITDC-Aldeasa combine, is committed to giving a minimum guarantee of Rs 260 crore to MIAL, about 60% lower than the ITDC-Aldeasa JV.
Meanwhile, DFS is facing hurdles in starting its operation as employees who were deployed by ITDC in the Mumbai duty-free shops before its contract expired are on warpath. They want DFS to hire them and have taken up the issue through trade unions and political interests. Representatives of the company declined to go into the details.
According to sources, the new duty-free operator had organised walk-in interviews at Grand Hyatt in Mumbai in January which was disrupted by supporters of former ITDC employees backed by Maharashtra Navnirman Sena-affiliated unions. They protested at the location and demanded jobs for former ITDC hands who were given VRS after the public sector company���s contract to run duty-free outlets at Mumbai airport expired.
The protesters said advertisement for interview should have been published in Marathi newspapers, too. Subsequently, DFS is understood to be conducting interviews through agents and video conferencing. Unions affiliated to Shiv Sena have also sought re-employment of ex-ITDC employees, the sources said.
MIAL officials, however, maintain that the duty-free outlets would start operating at the airport in the next few weeks. Lack of duty-free outlets remains a major handicap for the Mumbai airport, which is being upgraded by the GVK-led consortium.
���We have written to MIAL for the revenue loss due to delay in the duty-free retail project,��� a senior AAI official said. AAI holds 26% stake in MIAL and is entitled to get 36.7% revenue from the airport.
MIAL, which is modernising the Mumbai airport, had awarded a mega contract for duty-free outlets to a joint venture between ITDC and Aldeasa of Spain. However, it failed to take off. Then the contract was offered to DFS, which is yet to begin its operation. DFS was expected to launch the much-awaited duty-free shops by the end of January. Passengers using the airport for international flights are also denied of duty-free shopping facilities due to the delay.
DFS, the second-highest bidder after ITDC-Aldeasa combine, is committed to giving a minimum guarantee of Rs 260 crore to MIAL, about 60% lower than the ITDC-Aldeasa JV.
Meanwhile, DFS is facing hurdles in starting its operation as employees who were deployed by ITDC in the Mumbai duty-free shops before its contract expired are on warpath. They want DFS to hire them and have taken up the issue through trade unions and political interests. Representatives of the company declined to go into the details.
According to sources, the new duty-free operator had organised walk-in interviews at Grand Hyatt in Mumbai in January which was disrupted by supporters of former ITDC employees backed by Maharashtra Navnirman Sena-affiliated unions. They protested at the location and demanded jobs for former ITDC hands who were given VRS after the public sector company���s contract to run duty-free outlets at Mumbai airport expired.
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The protesters said advertisement for interview should have been published in Marathi newspapers, too. Subsequently, DFS is understood to be conducting interviews through agents and video conferencing. Unions affiliated to Shiv Sena have also sought re-employment of ex-ITDC employees, the sources said.
MIAL officials, however, maintain that the duty-free outlets would start operating at the airport in the next few weeks. Lack of duty-free outlets remains a major handicap for the Mumbai airport, which is being upgraded by the GVK-led consortium.
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