The Central government is all out to generate more revenue for the development of the country. But, the federal government is being criticised by activists and the opposition parties for trying to ‘privatise’ important services.
The Lokpriya Gopinath Bordoloi International Airport in Guwahati, which is one of the fastest-growing airports in India, was handed over to the Adani Group for operations, management and development responsibilities in October 2021.
In 2018, the Government of India included the Guwahati airport in the group of six airports – Ahmedabad, Lucknow, Mangalore, Jaipur and Thiruvananthapuram set for “privatisation” of operations, management and development (OMD) for a period of 50 years. Adani Enterprise Limited emerged as the successful bidder for all six airports.
As the media reported that the airports were “privatised”, the Centre always asserted that the airports were given to the Adani Group in a PPP (public-private partnership) mode for 50 years.
The same controversy has come into sight in Assam as two major ports of Assam were handed over to a private party for operation and management for five years. When the media reported that the ports were privatised, after two days, the Inland Water Authority of India (IWAI) issued a press release clarifying that the ports were “not privatised”.
On September 5, G Plus reported that Pandu and Dhubri ports in Assam are “privatised” for five years. The word “privatised” was only used in the headline of the report, and in the copy, it was clearly mentioned that the government has decided to lease out the two ports under the IWAI (Inland Waterways Authority of India) to the private company on an O&M (Operation and Maintenance) basis for five years.
In the headline it was written privatised because the private party – A to Z Exim, was awarded the lease for five years, A press release, issued on September 5, started the headline of the press release saying, “Privatisation of IWAI Pandu and Dhubri Terminals, Assam,”.
On September 7, the IWAI, in a press release, clarified that neither Pandu nor Dhubri ports were privatised.
A Selvakumar, Regional Director (Pandu), Inland Waterways Authority of India (IWAI), through the press release, said, “Let me first clarify that neither Pandu nor Dhubri ports were privatised. We have only engaged a specialist contractor who will be operating and managing the cargo from both ports.”
The contractor was selected through due process of law through a competitive national bidding basis, Selvakumar, said, adding that prior to tendering these terminals for O&M, a detailed study was also carried out to decide a suitable and most appropriate transaction model.
The Regional Director of the IWAI said a number of discussions were held with the stakeholders/local operators at Pandu & Dhubri as well as other places. “Based on the outcome of the discussions with the stakeholders/private operators, the process of giving out the terminal on an operation & management basis was initiated,” he said.
The press release issued by IWAI stated that the PPP model will bring in global best practices which are going to unlock huge potential for trade enhancement in both Pandu and Dhubri ports.
The various charges for loading and unloading of cargo were also decided with due consultation with the stakeholders and the rates were fixed by IWAI, Selvakumar said.
The rates include advanced mechanical handling equipment to increase the efficiency of the loading and unloading of cargo at terminals.
The present system will usher in a more transparent and professional logistics system, the IWAI claimed.
It is to be noted that if the MCRCV (Minimum Cumulative Riverine Cargo Volume) is not met by the operator, then a financial penalty will be imposed along with a reduction of the contract period.
The press release issued by IWAI also claimed that the model is aimed at improving the cargo movement of existing 0.5 million MT to increase to 3 million MT of exports from Assam and the North East.
The new agreement is also likely to generate potential employment to at least 73,000 man-days employment per year during the tenure of the agreement, the IWAI claimed.
Increasing revenue is definitely a positive initiative. But, it is surprising as to the government can’t increase revenue without involving private parties.
Ajoy Dutta, a Padmashree Awardee, social activist and a vocal citizen of Guwahati, talking to G Plus said, “I don’t understand the reasons behind privatization. However, having been actively involved in the Trade Indian Movement, I fear that once it’s privatized, it may lead to exploitation.”
Following the handover of the port, the chief of the Inland Waterways Authority of India (IWAI), Pandu, Selvakumar, claimed that for so long, no IWAI manpower was engaged in port operations.
However, through this deal, there will be an increase in manpower, added the regional director.
The move raises the question of how was the port handled all these days. And why the government cannot plan, strategise and operate the port on its own so that the port generates revenue for the government.
“Why can’t the government generate revenue without private partnerships? Why is the government dependent on private parties?” questioned a fourth-grade employee of Pandu Port on condition of anonymity.
Leader of opposition in Assam, Debabrata Saikia, talking to G Plus said, “If it is privatised, the government is serving the port to private parties on a platter, after spending public money to build the port.”
“Privatisation is a policy of the BJP. They might not have technically privatised the ports, but it is the beginning of privatisation,” said Lurinjyoti Gogoi, President of Assam Jatiya Parishad.
Not only political critics of the government but even the general public are questioning the motive or intent of the authorities behind leasing out Pandu and Dhubri ports to a private party for five years.
