GMR, Essel Group interested in airport privatisation bids

Modernisation of airports through public private partnership model will see a competition between existing airport operators

GMR Group and Essel Group have shown interest to participate in bids for all the four government-run airports, sources said.

The Airport Authority of India has initiated a pre-bid process to shortlist bidders to develop the airports at Ahmedabad, Chennai, Jaipur, and Kolkata. The companies will have to give details by March 24.

The modernisation of airports through the public-private partnership model will see a competition between existing airport operators, including GMR Group and GVK, and entrants such as Adani Group.

According to sources, Tata Realty and Infrastructure is said to be keen to participate in the Ahmedabad and Chennai projects, while GVK and Adani Group are expected to participate in the Ahmedabad project.

Other companies that have shown interest include Siemens and duty-free operator Flemingo.

“The GVK group is keen to expand its footprint in the airport business in India and abroad. But our interest would depend on the clarity of the commercial terms and regulatory principles for the projects,” a firm spokesperson said.

Last week, Rajeev Jain, the chief executive of GVK group-run-Mumbai International Airport Limited, said the group would be selective in bidding for new airports and had sought regulatory clarity from the government on bids.

The development work at the four airports will cost over Rs 1,800 crore. This includes both the airside infrastructure and the terminal modification and expansion.

One of the bid conditions requires the applicant or the group to have five years experience in the operations and the maintenance of an airport or engage companies with the requisite experience.

While GVK and GMR Group run airports in metros, others interested such as Essel, Adani and Tata Realty, which do not run airports, will have to tie up with airport operators.

“Tata Realty and Infrastructure Limited (TRIL) and VINCI Airports has submitted its RFQ application for the Navi Mumbai airport. As far as the other bids are concerned, TRIL is exploring opportunities and will take an appropriate decision, shortly,'' a company spokesperson said.

Adani Group and Essel group did not respond to email query seeking comments.

A senior AAI executive said the bid conditions have been finalised by the ministry. “Ideally the bidding consortium should have experience as an airport operator, but the current RFQ allows local infrastructure firms to find an airport partner after winning the bid. This is not good and we have to protect our interests at the bid stage.”