Lok Sabha Question No. 3071 (UNSTARRED), answered on 2023-03-20
Subject: Competition Commission of India
Ministry: CORPORATE AFFAIRS
Asked by: D. M. Kathir Anand

## GOVERNMENT OF INDIA

## MINISTRY OF CORPORATE AFFAIRS

## ANSWERED ON MONDAY, THE 20 TH  MARCH, 2023

## LOK SABHA UNSTARRED QUESTION NO. 3071 PHALGUNA 29, 1944 (SAKA)

## COMPETITION COMMISSION OF INDIA QUESTION

3071. SHRI D. M. KATHIR ANAND:

Will the Minister of CORPORATE AFFAIRS be pleased to state:

- (a) whether the Competition Commission of India had marked the various sectors  including  Civil  Aviation,  Port,  Telecom  for  a  review  of  market dominance by certain companies and if so, the details thereof;
- (b) whether  the  Department  of  Economic  Affairs  had  commented  on  a referral by the Public Private Partnership Appraisal Committee that not more than two airports be awarded to the same bidder factoring high financial risk and performance issues and if so, the details thereof and the Governments response in this regard; and
- (c) whether  the  Government  has  made  certain  changes  in  the  eligibility conditions so that the companies  without prior experience can also participate in the bidding and if so, the details thereof?

## ANSWER

THE  MINISTER  OF  STATE  (INDEPENDENT  CHARGE)  OF  THE  MINISTRY  OF STATISTICS  AND  PROGRAMME  IMPLEMENTATION;  MINISTER  OF  STATE (INDEPENDENT CHARGE) OF THE MINISTRY OF PLANNING; AND MINISTER OF

STATE IN THE MINISTRY OF CORPORATE AFFAIRS.

(RAO INDERJIT SINGH)

- (a): No  Sir.  Competition  Commission  of  India  (CCI)  had  not  marked  the various sectors including Civil Aviation, Port, Telecom for a review of market dominance by certain companies.  However, world over, market studies are considered as a versatile tool for competition authorities to analyse whether there  are  competition  issues  in  any  given  sector,  outside  the  context  of enforcement and merger review.  Understanding the potential of such market studies, CCI has been commissioning market studies in the past.  Study in Competition  Issues  in  the  Air  Transport  Sector  in  India was  conducted  in November  2008.    Study  in  Competition  Policy  in  Telecommunications  in India was conducted in December 2007 and study on the Telecom Sector in India was conducted in 2021.
- (b) & (c): The Ministry of Civil Aviation in their reply dated 17.03.2023 has stated that Airports Authority of India (AAI) has recently awarded six airports

namely Ahmedabad in Gujarat, Jaipur in Rajasthan, Lucknow in Uttar Pradesh, in Karnataka for Operations, Management and Development under Public Private

Guwahati in  Assam, Thiruvananthapuram in Kerala and Mangaluru Partnership (PPP) for 50 years.

The terms and conditions of the transaction of PPP of these six airports were decided by the Empowered Group of Secretaries (EGoS) chaired by CEO NITI

Aayog.

In order to ensure more competition and to give more flexibility to bidders, the following conditions among others were stipulated:-

- i. No prior airport experience;
- ii. No cap on number of airports;

iii. Per Passenger Fee as bidding parameter instead of revenue sharing.

Further,  the  Department  of  Economic  Affairs  (DEA)  in  their  reply  dated 17.03.2023  has  stated  that  in  the  Public  Private  Partnership  Appraisal Committee  (PPPAC)  appraisal  process,  concerned  Ministries/  Departments give their comments/ suggestions approved at appropriate level.  In case of DEA, it is issued by the PPP cell with the approval of the Joint Secretary.  The

PPPAC being the appraisal body takes the final decision.

In this case, the appraisal note dated 10.12.2018 was given by the PPP cell of the Department of Economic Affairs which, inter-alia, included the suggestion to incorporate the clause that not more than two airports will be awarded to the same bidder.

Cabinet in its meeting held on 08.11.2018 had approved the constitution of Empowered Group of Secretaries (EGoS) headed by CEO, NITI Aayog, with Secretary  MoCA,  Secretary  DoE  and  Secretary  DEA  as  members,  to  take  a decision on the issues falling beyond the scope of the PPPAC in the matter relating to leasing out of the six airports through PPP mode.  The said EGoS, in  its  meeting  held  on  17.11.2018  decided  that  no  restriction  needs  to  be placed on the number of airports to be bid for or to be awarded to a single entity.

Subsequently, in the 85 th meeting held on 11.12.2018, the PPPAC, acknowledging the decision of the EGoS, decided not to examine the matters which were already decided by the EGoS in its meetings held on 17.11.2018 unless there is an apparent deviation from the PPPAC guidelines.

Again, in the meeting dated 09.8.2019, the EGoS, inter-alia, deliberated upon the comments of the PPP Cell of the DEA on the issue of number of airports to be awarded to a single bidder, given vide Appraisal Note dated 10.12.2018. The EGoS while acknowledging the decision of the PPPAC in the meeting dated 11.12.2018 (not to examine the matters which were already decided by the EGoS in its meetings held on 17.11.2018 unless there is an apparent deviation from the PPPAC guidelines) reconfirmed that the decision of the EGoS in this regard was a considered decision with a view to place minimum restrictions on the bidders so that more and better bids are drawn for the project.

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