Government okays modernisation of Delhi, Mumbai airports

Our Economy Bureau
12 September 2003

New Delhi: The modernisation of the New Delhi and Mumbai airports has been approved by the Union Cabinet yesterday.

The two airports will be modernised through the joint venture route, with 74 per cent participation by the private party and 26 per cent to be held by the Airports Authority of India (AAI) and other government entities.

The two airport projects are to be implemented simultaneously although different partners will be selected for each. The government proposes to give the two airports on concession to the joint venture partner for a period of 30 years, with a provision to extend it by another 30 years.

Minister for Civil Aviation Rajiv Pratap Rudy said a committee of ministers comprising, among others, the minister of finance and the minister of civil aviation has been constituted to decide the financial parameters for evaluation of bids and the tariff regime.

The government plans to invite the request for expression of interest from prospective bidders separately for the two projects.