DLF changes airport partner

Delhi-based construction major DLF Universal has parted ways with Malaysian Airport Holdings and joined the Bharti-Changi consortium in its race for the privatisation and modernisation of the Delhi and Mumbai airports.

"DLF Universal has decided to join the Bharti-Changi consortium to pursue the Delhi airport modernisation and restructuring project," Bharti said in a statement today.

With this move, DLF Universal will no longer be pursuing its earlier bid with the Malaysian airport operator.

However, it is not sure whether Malaysian Airport Holding will be exiting the race for the two airports or will join any other consortium.

The companies also did not offer any reason for the break-up. 'There have been indications that some of the companies were looking at realigning with other groups. We think this is an a natural process and we are worried about it,' said a senior government official.

'DLF brings to the consortium-established skills in both infrastructure and real estate. It shares a common vision with the Bharti-Changi consortium who is deeply committed to build world-class airports in India. DLF's experience will further enhance the existing resources, experience and project management expertise of the Bharti-Changi consortium,' the Bharti statement said.

'Bharti-Changi is pleased to welcome DLF into the consortium. DLF's experience in building high quality real estate and infrastructure projects will go a long way in ensuring that India gets the very best,' the statement added.

This move brings down the total number of consortiums in the fray for the two airports to eight. The companies are in the race are the consortium of Bharti Enterprises and Changi, L&T, Essel Group, GMR Group, GVK Group, Reliance, Macquire Bank and DS Construction.

However, the government sources said that it would be happy if there are at least three companies in the race for each airport. 'This will help us get a good valuation for each airports,' he said.

The government expects that the development of Mumbai airport will require an investment of Rs 6, 400 crore over the next 20 years, while the Delhi airport would need an investment of Rs 8,720 crore.

This invest requirements have been worked out on the basis that Mumbai would handle 52 million passengers by 2024 and Delhi would handle about 428 million passengers.