Airports revamp: Struck at takeoff? | india | Hindustan Times
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Airports revamp: Struck at takeoff?

The consortiums of GMR-Fraport and GVK-ACSA won the contracts for the Delhi and Mumbai airports respectively. This would take the two cities a step closer to the dream of world-class airports.

india Updated: Feb 01, 2006 12:30 IST

GMR takes Delhi, GVK gets Mumbai

The consortiums of GMR-Fraport and GVK-ACSA won the contracts for the Delhi and Mumbai airports respectively. This would take the two cities a step closer to the dream of world-class airports.

Although GMR was the second highest in terms of financial bids at both the airports, the government gave it the first chance to select the airport of its choice -- because it was the only bidder to score over 80 marks in the technical bids -- provided it matched the highest bid.

GMR, which had offered to share 43.65 per cent of the revenue for Delhi, matched the highest bidder's (Reliance) 45.99 per cent. For Mumbai, GVK was the highest bidder with 38.70 per cent. The second highest bidder was GMR at 33.03 per cent.

Announcing the winners after the decision was endorsed by the empowered Group of Ministers (eGoM), Civil Aviation Minister Praful Patel said the cabinet would give the final approval on Wednesday.

"The transfer exercise for both the airports will be completed in two months -- by March 31," said Patel. Asked if GVK-ACSA was capable of developing world-class airports -- the consortium had scored only 59.3 marks in development capability -- Patel said there was no way out, since all the bidders other than GMR had scored less than 80. "Some compromises have to be made if you want to complete the exercise on time," he said.

On the legal tenability of the process, since the request for proposal (RFP) was changed midway, Patel said there was a provision in the RFP and the opinion of the eGoM's legal advisers was also taken.