Airport touchdown begins

The process now enters an interesting selection phase. First, the inter-ministerial group comprising secretaries of the ministries represented in the Group of Ministers GoM for this purpose will have to finalise an evaluation matrix specifying the marks allotted against each criteria of selection.

This is expected to be done within the next two weeks. Soon after, the bidders will be called and only the technical bids will be opened in their presence. These documents run into into thousands of pages per consortium. Over the next month or so, almost until early November, these bids will be analysed and marked according to the matrix.

These will be screened at various levels before being put up before the GoM with detailed recommendations. It8217;s learnt that only those bids which have scored 80 per cent or more will qualify for selection. The financial bids of only these consortia will be opened while the rest will be sifted out of the process.

As for the financial bids, the consortium, which gives the maximum revenue share to Airports Authority of India AAI will be given preference. In fact, sources said, this is the sole criteria in analysing the financial bids though the GoM will have to decide depending on the kind of results before them.

So, it is clear that from now on the initiative will lie with the government to expedite matters. The estimated capital cost to undertake the first phase of modernisation at Delhi airport is Rs 2,800 crore while it is Rs 2,600 crore for Mumbai.

Mumbai, however, already handles close to 14 million passengers annually and is likely to take more than 17-18 million passengers over the next five to six years despite the modernisation. So a greenfield airport is deemed necessary at Navi Mumbai, where the selected bidder for Mumbai will have the first rights of refusal.

On the withdrawal of two consortia from the bidding process, Civil Aviation Secretary Ajay Prasad said: 8216;8216;Bharti informed us that Changi felt the timeframe for completing the project was not adequate and the capital limit was too high, while Hochtief wanted a whole review of the transaction document. This was not possible.8217;8217;

He also sought to clarify that the government was not penalising the foreign partners, but only stipulating a requirement that they should be bound by a performance guarantee with their Indian partners in the respective consortia.

8216;8216;We want to ensure that operators perform and achieve the desired standards. We want the operator to bind itself with a bank guarantee, the amount of which will not come to the government, but go to the consortium.8217;8217;

It now comes to light that Changi had not outright refused, but sought more time from the government through Bharti to make up its mind. But Prasad felt that such a exemption was not possible given the delay that has already occurred in the process.

It8217;s learnt that Piramal and L038;T were also keen to look out for new foreign partner after Hochtief walked out but Prasad clarified that the last date for making such changes was June 3.