GMR submits Rs 500 cr guarantee

GVK, which has been selected for Mumbai, will do so within a few days.

Within a day of Airport Authority of India raising a demand, the GMR-Fraport consortium on Monday submitted the Rs 500 crore bid bond guarantee for the modernisation of Delhi airport.

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Meanwhile, GVK-South Africa said it will do so within a few days.

The GMR-Fraport consortium have submitted the guarantee amount, sources in the know of developments said.

When contacted, a source in GVK-led consortium, which has been selected for the Mumbai airport, said: "We will be doing it in the next few days."

The government has already issued a Letter of Intent to the two consortia for the modernisation contracts.

The Airport Authority of India had also on Sunday asked the two successful bidders to furnish bond guarantee of Rs 500 crore by February 14.

After the submission of the bond guarantee, which has been increased from Rs 50 crore at the bid stage to Rs 500 crore now, the two successful bidders would move towards signing of the formal agreement for modernisation of the two airports and formation of joint ventures with AAI.

The Union Cabinet had decided on February 1 to award the contracts for Delhi and Mumbai airports.