GMR submits Rs 500cr bond to AAI

Within a day of Airport Authority of India (AAI) raising a demand, the GMR-Fraport consortium today submitted the Rs 500 crore bid bond guarantee for the modernisation of Delhi airport.

The GVK-South Africa Airport constortium is planning to submit the bond within a few days.

"The GMR-Fraport consortium have submitted the guarantee amount," sources in the know of developments said.

When contacted, a source in the GVK-led consortium, which has been selected for the Mumbai airport, said: "We will be doing it in the next few days."

The government has already issued letters of intent to the two consortia for the modernisation contracts. AAI had yesterday asked the two successful bidders to furnish guarantees of Rs 500 crore each by February 14.

After the submission of the guarantee, which has been increased from Rs 50 crore at the bid stage to Rs 500 crore now, the two successful bidders would move towards signing the formal agreements for the modernisation of the two airports and formation of joint ventures with AAI.