As per the report of the Global Technical Advisor of the Airports Authority of India, it is estimated on preliminary basis that for modernization and restructuring of Delhi and Mumbai Airports, capital investment to the extent of Rs. 8720 crores and Rs. 6400 crores will be required for the Delhi and Mumbai Airports, respectively. These estimates do not include cost of likely relocation of some of the assets and removal of encroachments.
At the present, the principles of Request For Proposal (RFP) Document and other Transaction documents including evaluation criteria regarding restructuring and modernization of these two airports are under the consideration of the Government The first phase of modernization/expansion of Delhi and Mumbai Airports is likely to be completed by 2010.
It may be recalled that on 11 September 2003 the Government had accorded its approval for restructuring and modernization of the international airports at Delhi and Mumbai through the formation of two separate Joint Venture Companies (JVCs) for world-class development and expansion. Airports Authority of India (AAI) and other Public Sector Undertakings (PSUs) of Government of India will hold 26% equity with the remaining 74% equity held by the private sector partner(s).
The transaction of restructuring and modernization of Delhi and Mumbai airports is proposed to be structured with the mechanism of upfront fee as well as annual lease payment from the JVCs. The quantum of revenue, which will accrue to AAI, can be estimated only after the bidding process.
The existing manpower at the two airports is to be utilised by the JVCs for 3 years. Thereafter, at least 40% of the employees shall be offered regular appointment in the JVCs. The remaining employees shall revert to AAI.
MC/GK
(Release ID :7807)