The Hindu Business Line : AAI inks pacts for airport revamp

TIME FOR MODERNISATION: (From left) The Chairman of the GMR Group, Mr G.M. Rao; the Chairman of the GVK Group, Mr G.V. Krishna Reddy; the Minister for Civil Aviation, Mr Praful Patel; and the Secretary, Civil Aviation, Mr Ajay Prasad, in the Capital on Tuesday. — Ramesh Sharma

New Delhi , April 4

Giving a boost to the Government's plans to modernise airports in Delhi and Mumbai, the Airports Authority of India (AAI) today signed the shareholders' agreement and the Operations, Maintenance, Development Agreements (OMDA) for both the airports with the GMR and GVK groups respectively.

"The OMDA has been signed. Now the two joint venture companies (that will run the airports) are in place. The two companies will pay Rs 150 crore upfront to the Government. The transition will be done soon," said the Minister for Civil Aviation, Mr Praful Patel, soon after the signing ceremony.

The OMDA is considered the mother document under which the AAI grants the joint venture company the right to operate, maintain, develop, design, construct, upgrade, modernise, finance, and manage the airport.

The OMDA's duration is 30 years although it can be extended for another 30 years.

The boards of both the airports will have 12 members - nine from the private company and three from the Government.

In the case of Delhi airport, the board is to be headed by Mr G.M. Rao and include Mr Srinivas Bommidala, who will be the Managing Director of the newly formed Delhi International Airport Ltd (DIAL), which will run the airport.

Govt representation

The Government representatives on the boards of the two airports include the Joint Secretary in the Ministry of Civil Aviation and the Director (Operations) and Director (Personnel and Administration) from AAI.

Sources said that certain "condition precedents", including firming up the State support agreement, have to be met before the joint venture company begins work at the two airports.

The Government has fixed the mandated capital expenditure during the first five years at Rs 2,600 crore for the Mumbai airport and at Rs 2,800 crore for the Delhi airport.

More Stories on : Modernisation | Airlines | Infrastructure

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
AAI inks pacts for airport revamp

Toy industry puts on muscle

SEBI rationalises NFO expenses by MFs

MphasiS BFL welcomes EDS offer

The crucial 9 pc

Govt gives in-principle nod for AI, IA merger

Improving returns from excess reserves

UB may gain control of Foster's Indian business

TV18 to pick up 50% in JobStreet

Flextronics to invest in SemIndia project

Veg oil market in bear grip

Curbs on iron ore exports likely

SBI strike: Govt not to relent