AAI, developers ink pacts to hand over airports

The government today signed two agreements to set up joint venture companies between the Airports Authority of India (AAI) and the GMR and GVK groups to hand over Delhi and Mumbai airports for privatisation and modernisation.

The pacts signed today are operations, maintenance and development agreements (OMDA) and the shareholders agreements. The agreements were signed by AAI Chairman K Ramalingam and AAI director V DV Prasada Rao.

"The OMDA and the shareholders agreements have been signed. The joint venture companies are in place," Civil Aviation Minister Praful Patel said. He added that the initial deposit of Rs 150 crore each would be paid by the two groups within a week, after which the process of transition will take place.

Patel refused to comment on the case filed by Anil Ambani's Reliance Airports against the modernisation process in Delhi High Court, but said the court has "permitted us to proceed with signing of the OMDA and shareholders agreements."

Some more important agreements are to be signed for the two airports by the joint venture companies in the next few months, including the crucial state support pact.

At the Mumbai airport, new high-speed exit taxiways, international cargo terminal, domestic apron expansion and new domestic terminal car park are slated to be completed.