Date:05/12/2005 URL: http://www.thehindubusinessline.com/2005/12/05/stories/2005120502580500.htm

Back Airports revamp plan: `Deadline in awarding contracts will be met'

Ashwini Phadnis

New Delhi , Dec. 4

THE process for modernisation and restructuring of Delhi and Mumbai airports is on track and the December 31 deadline for awarding the contract for both the airports will be met despite the Inter Ministerial Group meeting held here on Friday remaining inconclusive, senior Government officials said.

"There is complete unanimity among the six members of the empowered Group of Ministers that the dates decided on are not missed. The e-GoM will meet on Monday. It will be briefed on what happened at the IMG meeting. It is for the e-GOM to decide on the further course of action including whether the two names cleared in the preliminary report of the global technical advisor should be opened or the criterion be lowered to allow more bidders," sources said.

The Government has mandated that the bid of only those who score 80 per cent or above in the technical qualification round should be opened. Sources indicated that even if the criterion were lowered to 70 per cent there would not be much competition. "The criterion will have to be significantly lowered to get more people in. The Government is keen not only in ensuring that world class infrastructure is created but also that the revenue streams of Airports Authority of India (AAI) does not get diminished," officials said.

Asked whether legal opinion had been sought on the consequences of lowering the laid down technical standards, sources indicated that the Law Minister who is part of the e-GoM would look into the issue.

Meanwhile, in an effort to ensure greater transparency in the entire process, all documents including the bid of the joint workers forum of the Airports Authority of India and some anonymous letters written to the Government will be placed before the e-GoM for its consideration.

The Government has received six bids from top-notch industrial houses interested in participating in the restructuring of the Mumbai airport and five for the Delhi airport.

The five bidders for Delhi airport included GMR which had teamed up with the operators of Frankfurt airport, Fraport, Reliance, which had submitted a bid with ASA Mexico, D.S. Construction that had a tie-up with the Munich airport, Macquire that tied up with Airport de Paris and the Essel Group in association with Turkish airport operator, TAV.

For the Mumbai airport, the Government has also received a bid from the GVK group that has a tie-up with the South African airport.