India’s government insists it will continue with efforts to privatise Delhi and Mumbai airports despite the withdrawal of two high-profile foreign groups from contention and opposition from employees.
More than a year ago the government said 10 consortia had submitted expressions of interest in taking long-term leases on Delhi and Mumbai airports, which are badly in need of upgrades. Of these, eight were approved to go through to the next round – all groups involving well-known foreign companies and their Indian partners.
Questions over the success of the privatisation efforts were raised recently after two groups withdrew their interest: a consortium led by India’s Bharti Enterprises and involving Singapore’s Changi airport; and a consortium led by Piramal Holdings and involving Germany’s Hochtief. But the government says it is happily proceeding without Changi and Hochtief, and the programme is moving to the next phase after technical and financial bids were received from six groups. All six submitted bids for Mumbai airport, while five of them also filed bids for Delhi airport.
The government has said interested parties can bid for both airports, but can only buy into one of the facilities. Up to 49% of each airport is to be made available to foreign concerns and 25% to local investors. State-run Airports Authority of India (AAI) will retain 26% of each airport.
Privatisation plans are opposed by AAI employees, who fear job losses. An estimated 20,000 employees from the 100-plus airports managed by the state-owned company staged a one-day strike in protest in late September, with some disruption to flights. The government insists privatisation plans will go forward, however.
Source: Airline Business
