The Hindu Business Line : Delhi-Mumbai airports revamp — Ministerial panel to shortlist bidders based on ABN Amro report

THE inter-Ministerial group (IMG) on privatisation and modernisation of Delhi and Mumbai airports, which met here on Thursday to review the bids submitted by 10 private consortiums, decided to draw up a shortlist based on a report prepared by ABN Amro, the financial advisor for the project.

According to sources, the list of bidders so shortlisted, would then be put up for consideration by the empowered group of Ministers (e-GoM) headed by the Defence Minister, Mr Pranab Mukherjee.

The IMG, comprising officials from Airports Authority of India (AAI) and the Ministries of Finance, Defence and Law, discussed the issue with ABN Amro as also the global technical advisor for the project, Air Plan.

The IMG is headed by the Additional Secretary and Financial Advisor to the Ministries of Civil Aviation and Tourism, Mr V. Subramanian.

The shortlisted bidders will be asked to submit the financial bids, business plans as well as their architects' models for the two airports.

Ten companies — Reliance, Bharti, Essel, Larsen and Toubro, Videocon, the GMR Group, the GVK Group, Macquire Bank, DLF and DS Construction — have bid for the two airport projects.

In its previous meeting, the IMG had decided that consortiums bidding for the projects should have a minimum net worth of Rs 500 crore with a good track record of running airports in a profitable way.

Besides, the bidders' technical capability to build a world-class airport would also be scrutinised.

The selection of bidders for both airports will be finalised in a month.

Under the Rs 5,400-crore mega exercise, assets of individual airports will then be transferred to the joint venture company and leased to the successful bidder for 30 years after which it will be renewed for another 30 years.

The Government will continue to manage the security as well as the air traffic control at both airports.

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