| If the projects are completed on time, the companies will be allowed a 15 per cent hike in the current user charges applicable to various airport-related functions in the first year. But the increase will be only 10 per cent if a company stretches the deadline. |
| The minimum lock-in period for consortium partners executing the projects is likely to remain seven years. After that, the consortium structure can change with the Airports Authority of India's (AAI) permission. |
| Besides, the government is also likely to give the AAI a larger say in the running of the two airports. Key decisions will need to have AAI's consent, which will have a 26 per cent stake in the venture. |
| These conditions are expected to be part of the transaction documents being revised by the government, say officials. They also point out that the conditions are likely to be set to ensure that the government's role does not get undermined. |
| The document is slated to get finalised by July 15 and circulated by the end of this month. The bids will have to be submitted within two weeks after the documents are out and will be finalised in the following six-eight weeks. |
| The winners are likely be allowed no more than 5 per cent of land for commercial real estate development. |
| Besides, they may have to share a part of their non-aeronautical revenues with the government. The government is also mulling an increase in the minimum revenue share component from the present 5 per cent. |
| Last week, the government had decided to re-draft transaction documents following objections raised by various sections of the ruling United Progressive Alliance. |
| It had also postponed the last date for submitting the bids, which delayed the start of the airports privatisation process. |
| Flying returns |
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