Agreements were signed between AAI and the GMR and GVK groups to set up two joint ventures, which will take over the two airports for modernisation.
NEW DELHI: The privatisation of Mumbai and Delhi airports crossed another milestone on Tuesday with the signing of the agreements between Airports Authority of India (AAI) and the GMR and GVK groups to set up two joint ventures which will take over the two airports for modernisation.
The operation, maintenance and development agreements and the shareholders agreements were signed amidst protests by Left parties and airport workers' union after the Delhi High Court declined on Monday to grant a stay as requested by Anil Ambani-controlled Reliance Airport Developers that had lost the bids for the airports.
"The process did not begin today," civil aviation minister Praful Patel later told reporters. "The cabinet has taken the decision to award the contracts to GMR consortium for Delhi and GVK consortium for Mumbai. We are going ahead with that", he said. The singning of the OMDAs and shareholders agreements are important steps in setting up the two joint ventures which will carry out the modernisation of the two airports. But the actual transfer of the airports to the joint venture companies will take another few weeks.
"The stipulated equity contributions have to come in. Also the GVK and GMR consortia have to make the one-time initial payment of Rs150 crore each to the government. I expect this to be done soon and the airports will be handed over this month itself," Patel said. The modernisation of the two airports envisages a total investment of Rs 5,100 crore to handle the huge air traffic growth and the modernisation is scheduled to be completed by 2010. Even as the agreements were being signed at the Ashoka Hotel here, the employees took out a procession and staged a demonstration at the civil aviation ministry headquarters at Rajiv Gandhi Bhavan.
The Left parties, which support the UPA government from outside, called upon it to abandon the process of privatisation of the two airports even at this stage alleging that the process lacked transparency.
The workers union complained that the tripartite committee of the government, AAI and workers' representatives, set up to look into airport modernization plans, was not working properly. Patel, however, countered this saying the committee has had three meetings and was meant to evaluate modernisation of airports in future and not that of Delhi and Mumbai. Patel, however, reiterated the government's commitment that "there will be no loss of jobs at Mumbai and Delhi airports." All workers will be absorbed either by the joint venture companies or by the AAI.
The GMR-led consortium, comprising Fraport, Eraman Malaysia, and IDF, said under the OMDA, AAI has given the right to the consortium to undertake various airport functions, including operations, maintenance, development, design, construction and management of the Delhi airport.
The consortium will however, commence operations from the effective date which may be two to three months ahead.
Also on Patel’s menu...
The civil aviation ministry has drawn up a packed work programme for itself this month. Besides seeing through the actual transfer of the Mumbai and Delhi airports to the private sector partners for their modernisation, the ministry expects to take a final call on the proposed merger of Air India and Indian (formerly Indian Airlines).
Also, the Bill for Airport Economic Regulatory Authority (AERA) will be taken up for Cabinet approval and the new civil aviation policy will hopefully be announced.
Aviation minister Praful Patel laid down this ambitious work programme for this month after receiving a voluminous report on the restructuring of the director general of civil aviation (DGCA) from an expert committee headed by former civil aviation secretary M K Kaw on Tuesday.
“Much of the decision we are taking today should have been taken earlier, “ he said, emphasising the need for policies, regulations and infrastructure to keep pace with the explosive growth in the aviation sector.
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
)
){kind=small}
){kind=small}
)
)
)
)
)
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}