The Government has decided that the management of Delhi and Mumbai airports will be transferred in less than a year to a joint venture consortium which will have to transform them into ‘‘principal hubs of international travel to India.’’The Cabinet today gave its approval to the plan of handing over the two airports to two separate joint ventures in which 74 per cent equity would be invested by private partners and the rest by Airports Authority of India (AAI). Stalling, turbulence before the take-off • 1998: Govt decides to privatise metro airports. • 1999: AAI suggests 100% leasing for 30 yrs to private players. • 2001: House panel says security risks. AAI told to rework Bill. • 2001-2002: Security, ATC put under Govt control. • 2003: Govt announces privatisation, 50% with AAI. • AAI says we want only 10%. • Govt increases AAI holding to 26 per cent. • Cabinet OKs proposal for Mumbai, Delhi privatisation. Eight months given for bidder to be selected. No word on other airports. After the Cabinet meeting, Civil Aviation Minister Rajiv Pratap told reporters that the pre-condition for the selection of the private partner or a group is that it must include an international operator of repute which should be cleared by the Home Ministry.In addition, for each of the two airports, there will have to be two separate bidders.Global bids will be floated for the management and restructuring of the airports with firms submitting a concept design along with a time frame for implementation after being shortlisted.The successful bidder, which will be handed the management, will have to submit a master plan of development of the airports within a year. ‘‘A tentative timeframe of eight months from the date of Cabinet approval has been laid down to finalise selection of the bidder,’’ stated an official release. In lieu of the investment, the joint venture would get airport management for 30 years while airport security and air traffic control (ATC) would remain with the Government.‘‘The joint venture will also be given the freedom to undertake land related non-aeronautical activities to generate revenue,’’ the statement said. The AAI will enter into a concession agreement with the joint venture company which could be extended by another 30 years subject to mutual agreement.An empowered committee of ministers of finance, disinvestment, law and civil aviation has been constituted to decide the parameters for evaluation of bids, tariff regime and architectural designs. To address the concerns of the employees, the Cabinet decided that the existing staff of AAI would be transferred on deputation to the joint venture company for three years with option to get absorbed there or revert to AAI.
