Airports modernisation gets underway

09 February 2006

Finally the bedevilled airports modernisation programme for Mumbai and New Delhi airports got off the ground even as one of the contenders, Anil Ambani of Reliance Airport Developers has moved the Delhi High Court to scrap the tendering process.

The two consortia of GMR and GVK, which were awarded the contracts for the Delhi and Mumbai airports respectively have submitted bank guarantees of Rs5 billion each to the ministry of civil aviation, which has initiated the process of handing over the two airports to them. The modernisation has to be completed in three years.

The modernisation projects will be executed by a special purpose vehicle, which will have a 26-per cent shareholding by the Indian government and the remaining with the consortia executing the two projects.

The government is also making available additional land required for the expansion of the airports. The land will be leased initially for 30 years.