GMR, GVK sign pacts for Delhi, Mumbai
THE MODERNISATION of India's two busiest airports ? Delhi and Mumbai ? has been set in motion with the Airports Authority of India signing the operation, maintenance and development agreements with the two successful bidders. On Tuesday, the AAI signed the OMDAs with a consortium led by GMR Infrastructure for the Delhi airport and with a GVK-led consortium for the Mumbai airport.india Updated: Apr 05, 2006 00:34 IST
THE MODERNISATION of India's two busiest airports — Delhi and Mumbai — has been set in motion with the Airports Authority of India signing the operation, maintenance and development agreements with the two successful bidders.
On Tuesday, the AAI signed the OMDAs with a consortium led by GMR Infrastructure for the Delhi airport and with a GVK-led consortium for the Mumbai airport.
In effect, this means the two consortia will start the process of taking over the management control at the two airports. Company officials said the actual takeover would take a minimum of six-eight months.
Officials from both the consortia said they had to bring in equity capital in the joint venture in the ratio of 74:26, sign different agreements (like a security arrangement with the CISF, a navigation agreement) and take over agreements that are currently in operation.
The AAI has over 140 contracts and agreements with vendors, suppliers and services providers which need to be sorted out before the GVK and GMR consortia take full control of the airports.
It is learnt that the paid-up capital of each joint venture will be about Rs 200 crore initially. The AAI will infuse 26 per cent equity (Rs 52 crore) in both the JVs.
The assets transfer will take place in the next couple of months. After that, the AAI will invite each consortium to explain the day-to-day running of the airports..
Therefore, the effective transfer and development work at these airports will start in five-six months. In the case of the Delhi airport, the GMR group is confident of meeting the deadline for the 2010 Commonwealth Games.
The GMR consortium has Fraport (which manages the Frankfurt airport), the Infrastructure Development Finance Company (IDFC) and Erman Malaysia (which operates the Kuala Lumpur Airport) as its partners. The equity structure will be in the ratio 46:10:10:8:26 for GMR Infrastructure, Fraport, Erman Malaysia, the IDFC and the AAI respectively. The GVK-led group has tied up with the Airport Company of South Africa for the Mumbai airport. Both the partners will have a stake of 37 per cent each in the JV, while the AAI will own 26 per cent. The agreements bind the shareholders to develop, maintain and operate the development of the airports for 30 years.
The Left parties have, however, expressed their reservations and said Tuesday’s pacts go against the mandate for governance spelt out in the UPA government’s National Common Minimum Programme.
The CPM said the agreements had been signed at a time when charges of irregularities were being probed by a division bench of the Delhi High Court.
First Published: Apr 05, 2006 00:34 IST