Partners for airport projects to be finalised by August

New Delhi, April 19 | Updated: Apr 20 2005, 05:30am hrs
The joint venture (JV) partners for restructuring Delhi and Mumbai airports are likely to be finalised by July or August, civil aviation secretary Ajay Prasad has said.

Nine private partners have already been given 12 weeks time to submit their technical and financial bids, and based on their bids, we expect to take a final decision by July or August this year, Mr Prasad said on the sidelines of a Confederation of Indian Industry (CII) meet here on Tuesday.

While the private partner in JV will hold 74% equity, Airports Authority of India (AAI) will hold the balance 26% equity stake. In the next five years, it is estimated that Rs 8,720 crore is likely to be spent for Delhi airport and Rs 6,400 crore for Mumbai.

Mr Prasad also said AAI would borrow from the markets to fund airport expansion and upgradation programmes. We have already started the process to raise funds through debt, he said, without disclosing the amount to be raised.

Ruling out going to overseas markets to raise the funds, Mr Prasad said the government would approach the domestic market for the purpose. He said the exact time and the amount to be raised would be determined by the report of the study conducted on 25-30 airports across the country to find the traffic projections, aeronautical expansions and city-side development of each airport.

By April 30, we expect reports on 10 airports to be available, Mr Prasad said.