Monday, June 07, 2021

Deloitte new consultant for airport privatization

Nagpur: Mihan India Limited (MIL), state government agency operating Nagpur airport, has appointed financial consultancy — Deloitte India — as the new transaction advisor for privatization process.

Earlier, Ernst and Young was given the assignment. However, the entire process under which GMR Airports had emerged as the highest bidder was cancelled last year.

Now under Deloitte, the privatization process will start all over again, said a source in the MIL. This development was also confirmed by airport director Abid Ruhi.

Deloitte will be paid around Rs75 lakh for providing the roadmap towards privatization of the airport. Ernst and Young, which had the similar assignment, was paid a slightly higher amount, a source said. Four other consultancies had bid for the assignment. A decision to appoint Deloitte was taken two days ago, said a senior officer in the MIL here.

Deloitte has been lately appointed consultant for privatization of six airports under Airports Authority of India (AAI). Under the earlier model, MIL was supposed to get revenue share from the gross earnings of the private player. Now, there is a broad plan to have revenue-sharing model on per passenger basis, said a source.

MIL is a joint venture of Maharashtra Airport Development Company (MADC) and AAI. As a part of the plan to develop Nagpur airport under the Mihan project, MIL had invited bids for offloading 74% stake. In turn, the private player is supposed to invest in the airport for creating infrastructure.

Now, the whole process would start afresh and Deloitte would be suggesting the modalities of privatization of the airport, based on which fresh tenders will be called. The preliminary report by the consultant is expected to be submitted within 45-50 days.

07/06/21 Shishir Arya/Times of India

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