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Airports privatisation: Deadline for shortlisting bidders deferred

Only for the Lucknow airport, the process has been advanced after being deferred earlier, AAI sources said here.

The date for announcement of the shortlisted bidders for this airport had been deferred from 4 November to 15 December, but advanced once again to 27 November.

The dates for the remaining five airports at Chennai, Kolkata, Guwahati, Ahmedabad and Jaipur have all been postponed, they said, adding that the schedule for bidding for these airports would be announced later separately.

The dates for Chennai airport has been deferred from 4 November to 23 December, for Kolkata from 25 November to 20 January, for Jaipur from 11 November to 26 December, Ahmedabad from 5 November to 6 January and Guwahati from 20 November to 20 January.

No reason for postponing of the dates has been given by the AAI whose officials have also refused to comment.

Two weeks ago, senior Civil Aviation Ministry officials had expressed hope that the process of privatising these airports would be completed within a time-frame and ahead of the 2014 general elections.

Several private and foreign infrastructure firms like IL&FS Transportation Networks, Essar Projects India, Cochin International Ltd, Essel Infraprojects Ltd, GVK, Fraport, Saudi Arabia, GMR Airports Ltd, Sahara Group and Turkish firm Celebi Habacilik Holding AS, have evinced interest in these airport projects, with their representatives also visiting Chennai airport for site inspection last month.

The private parties, which are in the race to participate in the operation, management and transfer of these airports and wanted to submit the request for qualification (RFQ), have raised several issues including those relating to the workforce and returns to be given to AAI.

It is understood that the delay in finalising the bid documents has also been caused by legal and technical problems that cropped up in the finalisation of the concession agreements that are required to be signed between AAI and the selected private entities for these six airports.

In early September, the AAI had launched the process of allowing private parties to pick up 100 per cent equity stake in operation and management of six airports through the public-private partnership (PPP) mode.

The successful bidder is supposed to enter into partnership with the AAI on a 30-year lease to operate, manage and develop facilities at these airports. The scope of the project includes the entire airport, including the airside and city side facilities.
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