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

Ashwini Phadnis

New Delhi , Nov. 14

WINDS of change, it seems, are blowing through the corridors of power. From the days of the `lowest bidder is the best', it now appears to be an era of `money is not the only criteria, we want world-class infrastructure' as the bottom line.

This, in a way, according to official sources, sums up why the empowered Group of Ministers, which met here on Friday, could not zero in on a financial consultant to advise the Government on modernising the airports in Delhi and Mumbai.

Official sources told Business Line that bound by Government rules, a high-powered inter-ministerial bureaucratic committee had recommended the name of the `L-1' bidder for appointment as the financial advisor. However, the committee was of the opinion that the modernisation programme was too big a project to be entrusted to L-1.

Earlier this month, the committee had shortlisted ABN-Amro, Ernst & Young and KPMG as the prospective advisors from among which the final selection was to be made.

The committee included senior officials from the Ministries of Finance, Disinvestment and Law, apart from the Ministry of Civil Aviation.

``Bureaucrats are bound by the letter of the rules. However, the Cabinet can go by the spirit. After all, it is the highest decision-making body in the country. The empowered GoM has to be personally satisfied about the choice it is making,'' sources explained.

Sources also indicated that the rules of the Chief Vigilance Commissioner, which limit the decisions that a bureaucrat can take, are not applicable to decisions of the Cabinet.

The empowered committee, sources said, is likely to consider several aspects, one such being whether the party selected as advisor for the airport modernisation job has the experience in working on similar projects abroad. And, more importantly, whether the personnel connected with such ventures abroad will undertake the project in India also. For the record, the committee will meet again on November 19 when the three short-listed financial consultants will make their presentations. ``We hope to announce the financial consultant on that day,'' the Minister for Civil Aviation, Mr Rajiv Pratap Rudy, told newspersons after the meeting.

Mr Rudy said the expertise of the financial advisors has to be evaluated as the estimated cost of the modernisation of the two airports is around Rs 4,000 crore. Meanwhile, the move to divest the Centaur hotel, Delhi and the Chefair flight catering unit in Mumbai received an overwhelming response with the Government receiving 45 bids from prospective bidders.

Article E-Mail :: Comment :: Syndication

Stories in this Section
Emirates to create more entertainment facilities

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