MAPUSA
The State government's decision to extend the deadline for GMR Goa International Airport Ltd (GGIAL) to pay the State's gross revenue from the Manohar International Airport (MIA) at Mopa has sparked sharp criticism from the Opposition.
This extension, pushing the payment date from May 31, 2024, to December 7, 2024, has been viewed as a special concession to GMR, raising suspicions of a quid pro quo arrangement.
Congress MLA Carlos Ferreira expressed significant concern over the extension.
"There was a written agreement and a time schedule," he said, questioning the rationale behind the government’s decision.
Ferreira, who previously served as Goa's Advocate General, emphasised the gravity of the situation, asking, "What were the circumstances and grounds for the government to give the extension?"
Chief Minister Pramod Sawant defended the extension, stating it was based on the concessionaire agreement with GMR, which allows for such extensions in extraordinary events, such as a pandemic.
This defence was echoed by Advocate General Devidas Pangam, who cited the Force Majeure clause, suggesting the pandemic had impeded GGIAL’s ability to meet the original deadline.
However, Ferreira challenged this justification, arguing that Force Majeure clauses are standard in revenue-sharing contracts with the State. He questioned the government's leniency, saying, "Why should the State be easy in giving these things to them? The government has done everything to help GMR in Mopa and tried to kill Dabolim. The question here is whether there is quid pro quo in this."
Goa Forward Party President Vijai Sardesai, also criticised the decision, highlighting its potential financial impact.
"The extension given to GMR is a blatant misuse of power to benefit the company," Sardesai remarked.
He noted that while the pandemic caused widespread business losses, the government has not provided similar concessions to other businesses.
"If there is an increase in passenger and air traffic at Mopa, how can you relate back to Covid times and say we can’t pay you and then postpone?" Sardesai added, pointing out the inconsistency in the government’s stance.
Since its inauguration, Mopa airport has shown robust growth, handling over 3 million passengers, establishing connections to 25 domestic and four international destinations, and processing around 750 metric tons of cargo in its first 11 months.
GGIAL's financial performance, including increased revenue and improved EBITDA, reflects its operational success.
Ferreira underscored this point, questioning the relevance of Covid-related delays given the airport's thriving operations.
"The announcement of the CM is not some bounty as if they are giving us in advance. It’s a postponement of the date," he asserted.
Sardesai further criticised the decision, warning that by 2028, GMR could dominate 98 percent of Goa’s air traffic, suggesting the extension is a strategic move to benefit the company.
The State government’s decision to grant a 180-day extension to GGIAL has drawn severe backlash, with critics alleging favouritism and potential financial losses to the exchequer.
The opposition's demands for transparency and fairness in government dealings highlight the need for a thorough review of such significant decisions.
