Financial Daily from THE HINDU group of publications
Wednesday, Jul 21, 2004
Logistics - Airlines
Delhi, Mumbai airports modernisation Reliance, L&T, Videocon among 10 bidders
New Delhi/Mumbai , July 20
THE Government's proposed modernisation and restructuring programme for the Delhi and Mumbai airports received a shot in the arm with 10 parties, including Reliance Airport Developers, DLF, Essel, L&T, GVK, D.S. Construction Ltd and Videocon, submitting bids for expression of interest (EoI) on Tuesday, the last day for submission of the EoIs.
These apart, the Bharti group, which has tied up with Changi Airport Managers and Partners (Singapore) Pte, submitted its EoI on Monday and the Australian Macquarie Bank is also participating in the restructuring process.
The Rs 3,500-crore Essel group has submitted the EoI through its group company, Pan India Paryatan Ltd, which runs and owns `Essel World'. It has tied up with the Turkish Group, TAV which operates the Istanbul, Ankara and Tehran international airports.
"We have been looking at diversifying and developing the theme parks with international recreational facilities. With the increase in inbound traffic, the airport facilities in metros need a major push. For the Essel group, it was logical to move proactively in the direction of infrastructure development as well,'' said Mr Ashish Kaul, Vice-President, Corporate Brand Development, Essel group.
According to him, this is the first phase of the process of awarding this major contract that has opened with interested companies submitting an expression of interest as a prerequisite to graduate to the second stage where these pre-qualified companies will be privy to all the details of the scope of work and financials.
Larsen & Toubro is going to be a partner of two consortiums that will bid for the restructuring of the two metro airports.
For the Mumbai airport project, L&T is part of a consortium that includes Piramal Enterprises (Ajay Piramal group) and Hochtief Airport GmBH, Germany.
For the Delhi project, the engineering major has formed a consortium with Bharti Enterprises and Changi airport, Singapore, said Mr A. Ramakrishna, President (Operations), ECC division, and Deputy Managing Director, L&T.
Similarly, the Videocon group is associating with Australia's Mydhway Corporation, which manages the Sydney airport, to bid jointly for modernisation of these airports.
UK Infrastucture Ltd would be the construction advisor for the project.
Meanwhile, when contacted, official sources in the Capital said that the bids would be opened in the next few days after an Inter-Ministerial Group (IMG) is constituted to examine the bids.
The IMG, which is to be headed by the Additional Secretary and Financial Advisor in the Ministry of Civil Aviation, will have representation from the Ministries of Finance and Law.
Besides, an official of the Department of Disinvestment will also find place in the IMG.
The IMG will fix evaluation criteria for bids and formally present this to the financial consultant, ABN Amro.
It is only after this that ABN Amro will shortlist the bidders based on the criteria approved by the IMG and finalise the financial terms and conditions for the modernisation of the two airports.
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