Financial Daily from THE HINDU group of publications
Thursday, Feb 19, 2004
Logistics - Airlines
EoIs invited for Delhi, Mumbai airports revamp
New Delhi , Feb. 18
THE dream of India having world-class airports has moved a step closer to becoming reality.
The Government has invited expression of interest (EoI) for restructuring and modernisation of the airports in Delhi and Mumbai through private sector participation.
The Government has stipulated that any interested party or consortium submitting an EoI should have a minimum net worth of more than Rs 500 crore.
In case of a consortium bid, the combined net worth of only the `prime members,' as defined in the Invitation to Register Expression of Interest document, shall be considered for the purpose of meeting the net worth criterion of more than Rs 500 crore.
The deadline for interested parties to submit the EoI for participating in the project has been set as June 4.
The Government plans to have a two-stage selection process. The first stage involves the issuance of the Invitation to Register an Expression of Interest before which the pre-qualifying entities/consortia submitting the EoI, have to meet certain pre-decided qualification criteria.
In the second stage, the Request for Proposal document is to be issued to the short-listed entities/consortia, which are invited to submit their technical and financial bids.
Sources indicated that the interested parties would be required to demonstrate airport operations and management capabilities and expertise, financial resources and commitment, in addition to having a net worth in excess of Rs 500 crore.
Both the airports are to be restructured and modernised through the formation of separate joint venture companies in which AAI and other public sector entities of the Government would together hold 26 per cent equity. The remaining equity stake is to be held by the private sector partner(s).
The joint venture companies will have a long-term concession to operate the respective airports. Besides, key functions such as air traffic services, security, Customs, immigration, quarantine and meteorological services will continue to be performed by the various government agencies.
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