The Hindu Business Line : Airport modernisation: One bid rejected

Official sources told Business Line that the bid of only one of the 10 parties who had submitted expressions of interest (EoIs) to participate in the modernisation of the two airports has been rejected.

"The bid of a Maharashtra-based consumer goods manufacturer has been rejected. The rejection is not on grounds of net worth. The bid has been rejected because the group did not meet some of the other criteria that had been laid down. The group has tied up with an airport consultant rather than an existing airport operator as had been specified in the terms and conditions," official sources said.

Incidentally, the group was also unsuccessful in its attempts to participate in the divestment plan of Indian Airlines some years ago.

The sources also indicated that despite the Inter Ministerial Group (IMG) taking a liberal view on some of the laid down guidelines, it was the opinion of the high-powered group that the bid could not be accepted.

The Government had stipulated that each prospective bidder must have net worth in excess of Rs 500 crore.

The laid down guidelines also stipulate that each prospective bidder must be an airport operator or have at least one airport operator in its consortium. The Government has already indicated that it would follow a two-stage selection process for the proposed transaction.

The recommendation of the IMG will now be circulated to the four member empowered Group of Ministers (e-GoM) headed by the Defence Minister, Mr Pranab Mukherjee.