The Hindu Business Line : ABN Amro starts groundwork for Mumbai, Delhi airports revamp

THE Government's efforts to modernise the airports in Delhi and Mumbai are set to bear fruit in the New Year. At a preliminary meeting the officials of the Ministry of Civil Aviation had with the newly appointed global financial consultants ABN Amro here on Tuesday, the immediate issues which need to be tackled to kick-start the modernisation of the two airports were discussed threadbare.

Official sources told Business Line that at the meeting, the need for the global advisors to "identify policy issues" on which the "guidance" of the Group of Ministers (GoM) would be required was taken up.

"The policy issues need to be identified before the Expression of Interest can be invited. In addition, the new consultants have also been asked to make an assessment of the work done by KPMG, who were the earlier consultants," sources said.

Late last year, the Union Cabinet had approved a proposal for restructuring of Delhi and Mumbai airports of the Airports Authority of India (AAI) through the joint venture route. The Cabinet had mandated that a joint venture company be formed between AAI and the selected private sector partner separately for each airport. The equity holding of AAI and other Government of India public sector entities would together be 26 per cent and the remaining 74 per cent was to be contributed by the private partner.

The Cabinet also set up a GoM comprising the Ministers for Finance and the Civil Aviation to decide on the financial parameters for evaluation of the financial bids and the tariff regime.

During the latest round of consultations, the importance of identifying and settling policy issues before senior Ministers, including those who are members of the GoM, was also stressed.

However, the impending general elections are unlikely to hamper the creation of world-class airports at Delhi and Mumbai, especially as the proposal has already got the nod of the Union Cabinet, officials said.

"All attempts will be made to ensure that the major policy issues connected with modernisation of Delhi and Mumbai are cleared before campaigning begins. This will enable the consultants to carry on doing their work even when the election process is on," officials said. The global financial advisor will also assist the Government in selecting a global technical advisor for modernising the two metro airports.