Govt may restrict pvt developers from bidding for third airport

Claiming it wants to avoid creating new monopolies in the booming airport construction and modernization business, the civil aviation ministry is planning to restrict private developers to a maximum of two non-metro airports.
Contracts for modernization of two dozen non-metro airports across India will be opened for bidders over the next two years. It is estimated that India needs some Rs1,600 crore private investment at 35 non-metro airports, many of which have seen traffic swelling over the past three years as more low-fare airlines and international carriers enter the market.
GVK Power and Infrastructure Ltd, Reliance Anil Dhirubhai Ambani Group’s Reliance Energy Ltd, GMR Infrastructure Ltd, Tata Realty and Infrastructure Ltd, L&T Infrastructure Ltd, Unitech Ltd, Omaxe Ltd and Ansal Properties and Infrastructure Ltd are among those vying for business at the non-metro airports.
In the next three months, the selection process will require the ministry to shortlist five companies, which will then be asked to submit a financial bid before the final selection. However, since the selection criteria follows a set pattern and parameters, it is likely that the same developers, if they apply, will be shortlisted among the top five each time the government seeks a proposal for the remaining 22 airports.
The ministry is planning to restrict operators from bidding for other airports if they have already won contracts for two airports, according to a senior government official familiar with the process who did not wish to be identified. A developer may be allowed to bid for more airports only after meeting project deadlines on the first two projects as stipulated by the government.
24/03/08 Tarun Shukla/Livemint

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Categories: Airports Mar 2008, New Mar 2008