Tag Archives: PPP

PAC criticises Airport PPP in Mumbai and Delhi

29 Friday Apr 2016

Posted by in Corruption, General

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The Public Accounts Committee of the Parliament has criticised the method in the contract of Public Private Participation (PPP) both in the GVK controlled Mumbai Airport and  also in  the case of DIAL controlled Delhi Airport.

The cost of the Mumbai Project was estimated first at Rs. 5,826 crore initially, but the cost rose to more than 100% to Rs.12,380 crore. The PAC also stated that this is similar to the PPP implemented in the DIAL controlled Delhi Airport.

What the trade unions and Left Parties have been telling is proved true. The PPP is nothing short of privatisation to ensure that the private companies reap huge profit out of the government properties and assets.

The case of the VVIP Chopper purchase from Augusta Westland by the Government of India has once again come to the focus after the Italian Court has jailed the officers of the company for bribing Indian officials and politicians.

Who are these persons who received benefit out of these deals? It is doubtful whether any disclosure will be made since the people behind are powerful people of politics, bureaucracy and intermediaries.

Govt.to invest Rs. 8.5 Lakhs Crore for Indian Railways – MoS Finance

03 Thursday Sep 2015

Posted by in Disinvestment, General, Neo-liberal policy

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According to the Minister of State for Finance, Jayant Sinha, the government will invest Rs. 8.5 lakh crore for the Railway Sector. The amount is being invested to change the face of the sector, the MoS stated.

The reality is something different. The government has already decided for private participation in the Railways. These Rs. 8.5 lakhs will be utilised to ‘make it easy’ for the corporates to run the railways. It is to be remembered here that the government (Airport Authority) spent thousands of crore of rupees for the modernisation  of Chennai and Kolkata Airports. Immediately afterwards, the government decided for private participation of these two profitable airports with about Rs.200 – 300 crore of investment from corporates. It was only due to the strong opposition from the Airport employees as also the public that the government was compelled to defer it.

In Railways also, the investment will be from the Government and the profit will go to the private. Why the government could not think about the investment before any private participation was thought of. It is clear. PPP means, funds from the Public and the Profit for the corporates! Of course, Modi Government has to repay the huge election funds got from the corporates and big business.

 

About Railway Budget itself

09 Wednesday Jul 2014

Posted by in Neo-liberal policy

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Despite the protests from the opposition political parties and the employees unions, the BJP Government seems to be determined to proceed with the PPP and Privatisation of the Railways, part by part. First it is the Railway Stations. Through PPP or Privatisation, these stations are going to be entrusted with private companies in the name of modernisation, making more comfortable etc. etc. For whom? For the passengers, of course. But that is the catch. It will be mainly for the high class passengers.
And what the passengers will have to pay? The tea, refreshments will become costly. Newspapers may become costly. Platform Tickets will become costly. All these will go up by twice or thrice. The example of privatised Airports like Delhi and Mumbai are well known. After the Private companies took over the airports from Air-Port Authority of India, the prices of all commodities went up rocket like. The price of tea went up from Rs. 20 to Rs.40-60. that of Coffee went up to Rs. 80 – 120 and refreshments in the same high rates. Even the passengers have to pay airport charges of Rs. 300-400 to higher rates for international travel. Car Parking charges went up from Rs. 20 to 80 or above. Railway passengers may have to pay additional charges for entering the Railway Station. All know the experience of the Toll Roads. Even after the tender period is over, tolls are collected at exorbitant rates.
The BJP Government is advancing on the same neo-liberal policies, which was the path of Congress government. But now more aggressively.
The opposition parties in the parliament have strongly opposed the government proposals for PPP and privatisation. But it should not be limited to parliament alone. Protest should spread over the entire country to compel the government to backtrack.

Govt. hands profitable Airports to private

21 Monday Oct 2013

Posted by in PSU

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The government is openly coming out without any shame or cover to hand over the profitable airports to the private operators. The Civil Aviation Department has called for bids from private to run eight profitable airports which are now under the Airport Authority of India. These include Kolkata, Chennai, Lucknow, Ahmedabad etc. which are profitable. Further, recently all these airports have been modernised by the AAI with its own funds. Now, they are going to be handed over to private under the PPP scheme.
The most profitable airports, Mumbai and Delhi have already been privatised. The other airports with AAI are mainly small ones and mostly on loss. AAI was maintaining its operations with the profit of the major airports. Now, what will happen to AAI is to be seen.
The employees of AAI have opposed the transfer, but the government is moving fast to complete the deal before the General elections.
Shame on the government for its anti-people and anti-PSU decisions.

Airports also on sale, handing over to private companies.

12 Friday Jul 2013

Posted by in PSU

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The government aggressively persuing the neo-liberalisation policy has turned its vulture’s eyes on the Airports again. It has decided to hand over the Chennai and Kolkata Airports to private companies through the Public Private Participation (PPP) route. The timing is interesting. The decision is taken immediately after both these airports have been modernised by the Airport Authority of India (AAI) after spending hundreds of crore of rupees. What is the necessity for handing over the airports after spending a lot of money by the AAI and modernisation? Only to reap the benefits?

It is understood that the AAI gets its profit from about a few major airports in the country. Out of that,  Delhi and Mumbai as also Bengaluru and Hyderabad have already been handed over to private companies. They are making huge profits in addition through the usage of the land available by leasing out for banks, hotels etc. Now the proposal is to hand over Kolkata and Chennai also. Within a few years, AAI will be in loss, while the private companies will be reaping huge profits.

This policy of handing over the nation’s airports to the private companies has to be put an end to. Strong mass opinion and struggles by the unions in the AAI are necessary to counter the privatisation.