NEW DELHI: The Government on Tuesday signed two agreements to set up joint venture companies involving the public sector Airports Authority of India and the GMR and GVK groups for handing over the Delhi and Mumbai airports for modernisation.

"With the signing of the OMDA [Operations, Maintenance and Development Agreement] and the shareholders agreements, joint venture companies are now in place," Civil Aviation Minister Praful Patel told reporters here. These were signed by AAI Chairman K. Ramalingam and Director V.D.V. Prasada Rao in the presence of Mr. Patel .

Even as the agreements were being initialled, AAI employees took out a procession and staged a demonstration at the Rajiv Gandhi Bhavan, headquarters of the Ministry.

The process of modernisation of the two key airports — money-spinners for the AAI — faced stiff opposition from employees and the Left parties earlier this year. They wanted the AAI plan for modernisation considered and approved. It was Prime Minister Manmohan Singh's intervention that saved the day and the employees were assured their jobs in the new joint venture companies.

Mr. Patel said the initial deposit of Rs.150 crore each would be paid by the two private consortia within a week. Thereafter, the transition process would start.

Asked whether the Left concerns about the proceedings of the tripartite committee on airport modernisation were considered, the Minister said, "We have made it clear that the issue of Delhi and Mumbai airports cannot be revisited and there is no room for negotiations on this front."

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