Delhi
and Mumbai are the two major gateway airports and handle about 57 percent of
the passenger air traffic. During the
year 2004-05 Mumbai and Delhi Airports handled approximately 153000 and 122000
aircraft movements respectively.
The Government of India has decided
to restructure and modernize the Delhi and Mumbai Airports through the Joint
Venture (JV) Route by public-private-participation. Based on the process initiated in February 2004, the Government
has selected the GMR consortium as the successful bidder for Delhi Airport and
GVK consortium as the successful bidder for Mumbai Airport.
The
details of the procedure to be adopted for restructuring and modernization of
Delhi and Mumbai airports were outlined in the Request for Proposal Document
(RFP). The details of terms and conditions prescribed for tender, as given in
the RFP, inter-alia, include key features of transaction, the ownership
restrictions in terms of cross ownership, foreign ownership, procedure of
submission of the binding offers, information to be provided by Pre-Qualified
Bidders (PQBs), procedures for the evaluation of the offers etc. The RFP also gave powers to the government
to vary the conditions at any stage.
As per the procedure prescribed in the RFP, 10 entities lodged their
Expression of Interest (EOI) and nine were shortlisted. The Draft Transaction Documents were issued
to these nine PQBs. Out of these nine
PQBs finally six had submitted their offer for Mumbai Airport and five for
Delhi Airport.
Some
of the major steps taken towards the implementation of the decision are as
follows:
· Cabinet decision on 11th
September 2003
· Constitution of Empowered
Group of Ministers(EGOM) on 11th September 2003.
· Constitution of
Inter-Ministerial Group (IMG) to assist the EGOM in October 2003.
· Amendment to Airport
Authority of India Act on 1st July 2004
· Appointment of Financial
Consultants in April 2004.
· Appointment of Global
Technical Advisor and Legal Consultants on 25th June 2004
· Receipt of Expressions of
Interest on 28th July 2004
· Issuance of Request for Proposal
Documents on 1st April 2005
· Issuance of Transaction
Documents on 30th August 2005
· Receipt of Technical and
Financial Bids on 14th September 2005
· Opening of Financial Bids on
31st January 2006
· Issuance of Order on
Selection of successful bidders for Delhi and Mumbai airports on 4th
February 2006
The
successful bidder for Delhi Airport is the GMR Consortium consisting of :
(i)
GMR Infrastructure Ltd.,
(ii)
GMR Energy Limited
(iii)
GVL Investments Private Ltd.,
(iv)
Fraport AG Airport Services Worldwide
(v)
Malaysia Airports (Niaga)
(vi)
Sdn. Berhad
(vii)
India Development Fund
The
successful bidders for the Mumbai Airport is the GVK Consortium consisting of:
(i)
GVK Industries Ltd.,
(ii)
Airports Company South Africa
(iii)
The Big Vest Group Ltd.,
Some
of the important mandatory projects to be completed within two years/by the
year 2010 are:-
Delhi
Airport - New Parallel Runway, Initial parallel taxiways, Pair of crosslink
taxiways, International/Domestic terminal development, New car park, New
landside road to international/domestic complex.
Mumbai
Airport - New high speed exist taxiways, International cargo terminal, domestic
apron expansion, New domestic terminal car park.
The
Joint Venture Companies (JVCs) will be operating, managing and developing Delhi
and Mumbai airports for a period of 30 years with an option of extension of the
term for an additional 30 years. The
JVCs are required to submit Initial Development Plan for a period of 20 years,
master plan over a period of 20 years and also to maintain certain service
quality requirements. Non-compliance of
these requirements will attract suitable penalties.
It
has been estimated on preliminary basis that a capital investment to the extent
of Rs. 7961 crores and Rs. 6131 crores will be required for Delhi and Mumbai
airports, respectively over a period of 20 years in 4 stages of 5 years
each. The Joint Venture Companies will
be subject to a 49% maximum permissible limit of Foreign Direct Investment.
Within
three months from the date of execution of Operation Management and Development
Agreement (OMDA), subject to fulfilling the conditions precedent, the Joint
Venture Companies will be in possession of Delhi and Mumbai airports. Mandatory Capital Projects of Delhi and
Mumbai airports are likely to be completed on or before 31st March,
2010.
The
Government of India has structured the transaction in such a way so as to
protect the interests of the AAI employees.
The process provides for extension of operational support by AAI during
the first three years of the Concession period, wherein the employees at these
airports would continue to be the employees of the AAI and enjoy the same terms
and conditions of service as other AAI employees. On the expiry of the three year period, the successful bidder,
namely GMR Consortium for Delhi and GVK Consortium for Mumbai Airports will
absorb 60% of the employees working at the airports as on the effective date of
transaction. Those employees, who do not opt for the employment with the JVCs
will continue to remain as employees of AAI till their superannuation or
otherwise.
MC/GK
(Release ID :15826)