Changi Airport dumps Tatas, ties up with RIL

MUMBAI, SEPT 10: Changi Airport Authority of Singapore has dumped Tata Industries and joined hands with corporate major Reliance Industri...

MUMBAI, SEPT 10: Changi Airport Authority of Singapore has dumped Tata Industries and joined hands with corporate major Reliance Industries to bid for the Rs 1,500 crore Bangalore airport. The Tatas and Changi had earlier jointly bid for project but, in a controversial move, the Tatas backed out from the consortium citing delay in getting approvals from various governments.

The Karnataka government had subsequently invited applications from those companies/consortium who were interested in setting up the project. Of the 17 bidders, Reliance, Bechtel, Siemens are among the seven finalists who will bid for the green-field airport. One of the prominent bidders, Hindujas 8211; which has done a pre-feasibility study for a private airport in Mumbai 8211; is now out of the race, say aviation sources. When contacted, a Reliance spokesperson refused to comment on the issue.

The Bangalore airport, when commissioned would be second private sector airport in the country, after Kochi international airport. At present, Bangalore is handling 3.5 per cent of total passenger traffic movement in India which is expected to go up to double digits in the coming years.

As per Government of India norms, global tenders will be floated inviting financial and technical bids for the airport project. Foreign equity participation in airports is permitted upto 74 per cent with automatic approvals, and upto 100 per cent with special permission. Such participation could also be by foreign airport authorities.

Therefore, most of the companies which have bid for the project have joined hands with airport operators like Frankfurt airport, Dubai Airport Authority and even airliner Luftahansa.

After the completion of the project, the present airport in Bangalore, owned by Hindustan Aeronautics, would be closed down for passenger traffic. The old HAL airport would be used mainly for VIP and military traffic.

Aviation sources say that the work on the project will start by 2000 as ILFS is presently busy making the tender documents for the project.