Kolkata, Chennai airports upgrades soon

Plan panel asked to draft expression of interest.

The process of modernisation of the Chennai and Kolkata airports is gathering steam, with the government entrusting the Planning Commission with the task of drafting the expression of interest (EoI).

According to government officials, the Plan panel has also be given the task of working out the modalities of modernising the two airports.

The officials said the documents for the modernisation process will be finalised soon and tenders inviting private companies to participate in the process will be invited shortly.

Saying that the government wanted to avoid the complications it faced in selection of bids for modernisation of the Delhi and Mumbai airports, the officials said, "We have learnt lessons from the process. There will be changes in the way the process is conducted."

The government is considering setting up a special purpose vehicle (SPV) on the lines of the Delhi Metro to develop the Chennai and Kolkata airports. "These airports have to be modernised. We want to look at an alternate model. The SPV model seems to be best one," said a civil aviation ministry official.

The model under consideration will allow foreign airport companies, Indian firms and financial institutions to be a part of the SPV.

These companies will have an equity stake in the SPV. However, the government is yet to decide on the equity stake the private and foreign companies will be allowed to have.

The government also wants to limit the role of external agencies like technical advisers and financial advisers in future airport modernisation projects, after the role of Airplan and ABN Amro "� the two companies which advised the government on the Delhi and Mumbai airports upgrade came under criticism. Airplan was the technical adviser while ABN Amro was the financial adviser to the government.