• Investment World
• eWorld
• Catalyst
• Mentor
• Life
• Canvas
• Praxis
• Urban Pulse
• Brand Quest

Our Bureau

New Delhi , Nov. 5

THE Government's initiative to modernise the airports at Delhi and Mumbai is likely to get a fillip with the Group of Ministers (GoM) scheduled to meet here on Thursday to decide on the future road map and to firm up the names of the financial consultants.

While close to a dozen leading financial consulting firms were said to have made presentation to the Government for being appointed as the financial advisor, sources indicated that about five, including ABN-Amro, Ernst and Young, KPMG and PricewaterhouseCoopers were finally short-listed. The name of the financial advisor and is likely to be finalised tomorrow.

This will be the first meeting of the four-member GoM that was set up a few weeks ago. It comprises the Minister for Civil Aviation, Mr Rajiv Pratap Rudy, the Finance Minister, Mr Jaswant Singh, the Minister for Disinvestment, Mr Arun Shourie, and the Minister for Law, Commerce and Industry, Mr Arun Jaitley.

The Cabinet had, on September 11, approved the restructuring of the two metro airports through the joint venture route with a maximum of 74 per cent private equity.

However, the Government has made it clear that air traffic services and civil aviation security would continue with the Airports Authority of India (AAI) even after the airports pass into private sector hands.

The airports at Delhi and Mumbai will be given to the joint venture partner for a period of 30 years with a provision for extension by another 30 years, subject to mutual agreement.

Further, the Union Cabinet has already decided that the Delhi and Mumbai airports will be taken up as separate projects to be implemented simultaneously and different private partners will be selected for each airport.

As per the decided methodology, request for expression of interest (RFEOI) will be invited globally from prospective bidders separately for the two projects.

Short-listing of the bidders will be carried out on the basis of RFEOI documents. The short-listed bidders will be given an opportunity to submit request for proposals (RFP). Successful bidders will form joint venture companies with AAI through shareholders agreements.

Article E-Mail :: Comment :: Syndication

Stories in this Section
Open skies for Asean — Six southern cities likely to benefit

Copyright © 2003, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line