Tata, Changi join hands for airport modernisation projects

NEW DELHI: Singapore's Changi Airports International (CAI) has announced a strategic alliance with the Tata Group to pursue airport projects in the Indian subcontinent and vie for the modernisation works of airports at Chennai and Kolkata.

The two sides have signed an MoU "to invest in, develop and manage Indian airports", a CAI spokesperson said from Singapore.

Following the MoU, the two groups would set up a joint venture company, in which Tatas would hold 51 per cent stake and CAI 49 per cent.

Confirming this here, CAI Vice President (India) Ng Tim Peng told media: "We are partnering with the Tatas to get the contracts for modernisation work in Kolkata and Chennai airports" and added that "we are open to other partners with the right skills and expertise joining us in this venture".

Though no final decision has yet been taken by the Centre on the course of modernising these two metro airports, the West Bengal government has opined that Kolkata airport should be developed by the Airports Authority of India, while Tamil Nadu government favours the public-private partnership route.

This is the second time the Tatas are entering the aviation sector in the recent past. Earlier, the Indian conglomerate had tied up with the Singapore Airline to bid for
flag carrier Air-India when it was proposed to be privatised, but the process failed to take off.

"At present, we are concentrating on Kolkata and Chennai (airports modernisation)", Peng said in reply to questions, but added that the JV firm planned to bid for the development of 35 non-metro airports as well.