The Hindu Business Line : Govt to consider more bidders for Delhi, Mumbai airports modernisation

THE Government is looking to broad base the bidding process for modernisation of Delhi and Mumbai airports and now plans to open the financial bids of four of the six bidders participating in the restructuring of the two metro airports.

An official announcement is expected in the next day or two after the minutes of today's meeting have been signed by the Chairman of the empowered Group of Ministers (e-GoM) and Defence Minister, Mr Pranab Mukherjee.

Briefing newspersons after the e-GoM meeting, the Minister for Civil Aviation, Mr Praful Patel, said, "We have completed the deliberations and taken a decision. The final details will be made available soon."

At today's meeting the views expressed by various committees including the Committee of Secretaries and Group of Eminent Technical Experts headed by Mr E. Sreedharan, among others was considered. If the Government does decide to broad base the bidding process, it is likely that the bids of GMR-Fraport, the Mr Anil Ambani-led Reliance Group that has tied up with ASA Mexico, D.S. Construction that has tied up with Munich Airport and GVK that has bid jointly with South African airport may be considered.

When the modernisation process started in September last year, the Government received six bids from top-notch industrial houses for restructuring of the Mumbai airport and five for the Delhi airport.

The five bidders for Delhi airport included GMR that had teamed up with the operators of Frankfurt airport, Fraport; Reliance, which had submitted a bid with ASA Mexico; D.S. Construction that had a tie-up with the Munich airport; Macquire that tied up with Airport de Paris; and the Essel Group in association with Turkish airport operator TAV. For the Mumbai airport, the Government has also received a bid from the GVK group that has a tie-up with the South African Airport.

The Government plans to form two joint venture companies that will restructure and modernise both the airports. While the private sector companies will hold 74 per cent stake in the joint ventures, the remaining will be held by Airports Authority of India and other government companies.

The successful bidders will be allowed to run the airports on a 30-year lease, which can further be extended by another 30 years.