Govt to seek annual fee from successful bidders of non-metro airports

New Delhi: In a departure from the method followed for modernisation of Delhi and Mumbai airports, the Government will seek an annual fee which will accelerate by a fixed per cent every few years from the successful bidders selected for modernisation of 24 non-metro airports.
In Delhi and Mumbai, the Government had decided on the successful bidders on the basis of the highest revenue share offered.
This led to allegations that the method was flawed and that the Government did not pay enough attention to details while deciding on the successful bidders.
Official sources said another reason for deciding on the revenue share route for the non-metro airports was to avoid a situation where the winning bidder set up a number of subsidiaries and refuse to share the incomes from them with the Government.
11/05/08 Ashwini Phadnis/Business Line

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Categories: Airports May 2008