Deal to privatise airports signed | india | Hindustan Times
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Deal to privatise airports signed

The agreements to handover the Delhi and Mumbai airports to JV firms led by GMR and GVK are initially for 30 yrs.

india Updated: Apr 04, 2006 18:08 IST
Agencies

The mother agreements to handover Delhi and Mumbai airports to joint venture companies led by GMR and GVK groups were signed by the Union government in New Delhi on Tuesday.

The OMDAs (Operations, Maintenance and Development Agreement) were signed by AAI Chief K Ramalingam and Director Finance VDV Prasada Rao in presence of Civil Aviation Minister Praful Patel and Secretary Ajay Prasad.

"The OMDA and the shareholders agreements have been signed. The JV companies are in place and their Boards are meeting today," Patel told reporters after signing of the agreement.

The OMDA is between the Airports Authority of India (AAI) and two private consortiums led by GMR-Frapord and GVK-South African Airports.

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

Initially the OMDA is for 30 years, which can be extended for another 30 years.

Now, a new board of director--including representatives from the private developers --will be put in place.

The signing of agreements for privatising Delhi and Mumbai airports comes amid stiff opposition from the left parties and AAI employees' Unions.