New Delhi: The ministry of civil aviation is planning to reduce the concession period for the commercial contracts floated for operating food and beverage (F&B) outlets, retail units and duty-free shops at the Chennai and Kolkata airports. While earlier the plan was to award the contract for non-aeronautical facilities for a period of 10 years, the government is examining possibilities to bring it down to two years to leave a window for the private party which wins the management agreement to renegotiate terms for commercial ventures.
“We have to bid out the contracts for essential services such as F&B at least till the time the private player winning the management contract stabilizes operations. Instead of awarding the commercial contract for a 10-year period, we can bid it out for two years or five years. We are exploring the options”, informed a senior official in the ministry of civil aviation.
While the Airports of Authority of India (AAI) would take a final decision on the issue shortly, a reconsideration of the tenders floated for commercial contracts is underway as management agreements for the two airports are also being bid out simultaneously to private concessionaires.
Read news in full 18/10/13 Sharmistha Mukherjee/Business Standard
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