Mumbai: The government has relaxed rules allowing airlines or its associates to hold 26% stake in a special purpose vehicle which will develop the Navi Mumbai airport. The move gives a partial relief to the Tata group whose realty and infrastructure arm is keen to bid for the airport.
But the issue is far from over as another amendment to the bid conditions bars such companies from holding a board position on the special purpose vehicle. Tata Realty and Infrastructure Ltd (TRIL) is likely to seek a clarification from the government on the issue. The clause was added so as to restrict company managing the airport to take a decision favouring particular airlines.
City Industrial and Development Corporation (CIDCO) issued the request for qualification for the airport in February. It was amended following a decision by project management committee comprising of state and central government officials in July with fresh conditions and submission date extended to September 2.
This included an amendment to the clause which said that the special purpose (SPV) vehicle shall not include an equity ownership of an airline or its associates exceeding ten% of total equity of the SPV. Now the clause has been relaxed and airlines or their associates can hold upto 26% in the SPV. However the government has issued a rider which bars them from holding board position in the SPV.
05/08/14 Business Standard
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But the issue is far from over as another amendment to the bid conditions bars such companies from holding a board position on the special purpose vehicle. Tata Realty and Infrastructure Ltd (TRIL) is likely to seek a clarification from the government on the issue. The clause was added so as to restrict company managing the airport to take a decision favouring particular airlines.
City Industrial and Development Corporation (CIDCO) issued the request for qualification for the airport in February. It was amended following a decision by project management committee comprising of state and central government officials in July with fresh conditions and submission date extended to September 2.
This included an amendment to the clause which said that the special purpose (SPV) vehicle shall not include an equity ownership of an airline or its associates exceeding ten% of total equity of the SPV. Now the clause has been relaxed and airlines or their associates can hold upto 26% in the SPV. However the government has issued a rider which bars them from holding board position in the SPV.
05/08/14 Business Standard
