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Blair to address India-EU business summit at Delhi
New Delhi: The British Prime Minister, Tony Blair, is expected to address the sixth India-EU Business Summit to be held here on 7th September, along with the Prime Minister, Dr Manmohan Singh, who will join him. The European Commission President, Jose Manuel Barroso, will also address the plenary.

The summit, which is the first to be held after the enlargement of the EU, is seen as offering a wider platform for investors and businessmen from both sides to reflect upon the opportunities as well as problems faced by them and come up with a set of recommendations.

According to the European Commission delegation's First Counsellor, Stefano Gatto, development of a common agenda for Indo-EU economic cooperation and building a strategic partnership would be the focus of this year's Business Summit. "The point of this summit is not a forum for business negotiations but to create a platform for business relations," he added.

Pointing to the balanced trade between EU and India, Gatto said it was not difficult to reach the trade target of US$35bn this year.
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PM sets up group of ministers to reopen talks with Airbus
New Delhi: The Prime Minister has set up an empowered group of ministers to negotiate prices with Airbus Industrie, whose aircraft are being sought by Indian Airlines. The panel will be headed by finance minister P. Chidambaram and will also include civil aviation minister Praful Patel, law minister H.R. Bharadwaj and the minister of state for statistics and programme implementation, Oscar Fernandes.

Earlier this month, the cabinet committee on economic affairs had decided to set up the empowered group after MPs wrote to Prime Minister Manmohan Singh alleging that Indian Airlines had paid a higher price for 43 aircraft that it bought, compared with what its rivals had to pay for similar carriers. The state-run carrier plans to buy a fleet of 19 A-319s, four A-320s and 20 A-321 planes.

About 70 per cent of the aircraft are replacement buys, while the rest will augment IA's fleet. Indian Airlines will phase out 11 Boeing 737s that make up the Alliance Air fleet, 15 A-320s, which are on lease, and three A-300s.
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Govt invites bids for airport upgrade
New Delhi: The government has said that joint venture companies bidding for Delhi and Mumbai airport upgrades must have an authorised capital of at least Rs250 crore with an initial capital subscription of Rs 200 crore.

This is one of the conditions put by the government in the final transaction documents for the modernisation and restructuring of Delhi and Mumbai airports released to bidders today. The award of bids is expected to be completed by the year-end.

"Bidders are expected to give technical and financial bids within two weeks with effect from August 31, 2005," says Ajay Prasad, secretary, ministry of civil aviation.

The government has also fixed the minimum capital investment required in the first five years at Rs2,800 crore for Delhi airport and at Rs2,600 crore for Mumbai airport.

The bids will be awarded for an initial term of 30 years and can be extended by another 30 years. After the expiry or termination of the lease period, AAI will take over all the assets for operating the airports and will also have the option to take over all or any of the commercial or ancillary assets.

The documents also provide for a three-month transition period during which the airport management will be transferred from AAI to JVCs.

Current AAI employees posted at the airports would be retained for a minimum of three years on terms which are no less beneficial than the current arrangement, the documents says.

Airport operators will also have the first right of refusals to be a part of any new airports being developed within 150 kilometres of the present airport. If the company is not the successful bidder and its bid is within the range of 10 per cent of the most competitive bid received, the private consortium will be allowed to match first ranked bid in terms of the selection criteria for the second airport.

The eight consortia, which are in the race, include Bharti Enterprises-Singapore Changi Airport-DLF Universal, Hochtief Airport GMBH-Piramal Holdings Ltd-L&T Holding, Macquaire Bank Ltd-Sterlite Infrastructure Pvt Ltd-Aeroport du Paris, GMR Infrastructure Ltd-GMR Energy-Fraport AG, GVK Industries Ltd-Airports South Africa Ltd and Reliance Airport Developers Pvt Ltd-Reliance energy Ltd with Aeropuertos Servicios Auxiliiare.
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