IOC, BPCL in airport revamp bid

As the first option, the oil PSUs are planning a tie-up with the Airports Authority of India (AAI). Together, they can hold 26 per cent equity stake in a project. An alternate option that is being pursued by the oil PSUs is to form a joint venture with existing consortia of leading private companies.

Senior IOC and BPCL officials confirmed that negotiations were already in progress with AAI and the private consortium partners.

The government has allowed 74 per cent private equity in the two international airports through the joint venture (JV) route. In each JV, the government’s equity is limited to 26 per cent through AAI and other PSUs.

Sources in the two oil PSUs have said they were negotiating with both AAI and private consortia to pick up equity stake in both the Delhi and Mumbai airport projects. They intend to pick up a significant equity stake in the two projects so that they will have their representations on the board.

‘‘Central PSUs may participate in the JV as government allows them to tie up with AAI for total 26 per cent government’s equity in each JV. A decision in this regard will finally be taken by government as it is the owner of the authority,’’ an AAI source said.

The oil PSUs may also join hands with private consortia as some of them are open to include partners for strategic reasons. DLF-led consortium head A.S. Minocha said, ‘‘We are open to include other companies into the consortium, depending on what value they can bring in. We are not willing to include any company for financial considerations only.’’ DLF has joined hands with Malaysia Airports Holdings Berhad (MAHB) — the operator of Kuala Lumpur International Airport — which will pick up 10 per cent stake in the consortium.