Consortiums bidding for the privatisation and modernisation of the Delhi and Mumbai airports need to have a minimum networth of Rs 500 crore and should have a good track record of running airports. |
The decision was taken today at a meeting of the inter-ministerial group (IMG) on the airport privatisation. It has also directed ABN AMRO Bank, the financial advisor to the government in privatising the two airports, to examine the bids and come back with its recommendations in a week's time. |
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Ten companies""Reliance, Bharti, Essel, L&T, Videocon, GMR Group, GVK Group, Macquire Bank, DLF and DS Constriction""have bid for the two airports. Companies are also lining up investments to the tune of Rs 5,000 crore to modernise the airports. |
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Civil aviation ministry sources said the financial adviser has been directed to examine the record of the companies in handling and managing the airports. As per the norms prescribed, the airport partners in the consortiums will have to have a consistent track record in managing airports. |
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"The bidders should have a consistent record of running airports over a number of years," said a senior civil aviation ministry official. Besides, the financial adviser will also look at whether the airport partners in the consortiums have been meeting the global standards in running the airports. Another issue that will be examined is the ability of the companies in running airports in a profitable way. |
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The government will also ask the bidders to submit an additional information about their record in running airports in other parts of the world. Besides, the bidders' technical capability to build a world class airport will also be scrutinised. |
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"The government has set the basic guidelines for examining the bids. The financial adviser will now come back to the government with its report," said an official. |
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The inter-ministerial group, in its next meeting is expected to short-list the bidders based on the report from ABN AMRO. After this, the shortlisted bidders will be presented to the empowered group of ministers (EGoM) on the airport privatisation headed by Defence Minister Pranab Mukherjee. This will be done before the next session of Parliament. |
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Sources also said the government expected to finalise the bidders for the two airports in a months time. After the bidders are shortlisted, the government will ask them to come up with the financial and technical bids. |
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"After the examination of the expression of interest, the government will ask for financial and technical bids from the shortlisted companies. This will be done in consultations with the financial and technical advisers," said a civil aviation ministry official. Airport bidders - Bharti + Changi
- L&T+ Piramal + Hochtief
- Macquarie Bank +Agarwal Galvanising Private Limited + Aeroports de Paris.
- GMR + Fraport + IDF
- GVK + ACSA
- Reliance Airport Developers
- D S Construction Ltd + Flughafen Munchen GumbH,+ John Laing International + Apollo Enterprises Ltd+ Ebony Retail Holdings Ltd
- DLF+ Malaysian Airport
- Essel +TAV Consortium
- Videocon + MYPH Corp
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