German company to modernise New Delhi airport
31 January 2006, NEW DELHI - Major German airport company GMR Fraport has won the bid to modernise New Delhi airport, while the GVK South African consortium will modernise the airport in Bombay, it was officially announced Tuesday.
31 January 2006
NEW DELHI - Major German airport company GMR Fraport has won the bid to modernise New Delhi airport, while the GVK South African consortium will modernise the airport in Bombay, it was officially announced Tuesday.
The decision to modernise the two airports estimated at 1.2 billion dollars was taken amidst strike threats by leftist airport employees' unions which are opposed to privatisation.
"The empowered group of ministers (EGoM) has approved selection of the two consortia for the Delhi and Bombay airports," Civil Aviation Minister Praful Patel told reporters.
The decision of EGoM will be placed before the Indian cabinet Wednesday for final approval.
Patel said the GMR Fraport (Frankfurt Airport Services Worldwide) had matched highest bidder India's Reliance-ASA consortium by offering 45.99 per cent revenue share to the government.
GMR was allowed the option to be the top bidder at either of the airports as it was the only technically qualified bidder, the NDTV profit network reported.
For the Bombay airport, GVK offered 38.7 per cent revenue share. There were four bidders each for the two airports. The other bidders included DS Group, Munich.
The Indian government has planned to lease out airports to private firms in view of a growing demand to improve airport facilities in the country. Passengers and industry experts said airports in India desperately need a revamp.
But hundreds of protesting airport employees fear privatisation would lead to massive job cuts. They have threatened to cripple air services in the country by striking.
The unions demanded that the modernisation process should not be handed over to private players but to the government's Airports Authority of India.
The federal government has meanwhile drawn up contingency plans and has kept Indian Air Force personnel, including air traffic controllers and technicians, on standby in case the employees strike.
State governments and the police have also been instructed to ensure there are no flight disruptions.
Subject: German news