News: Bharti game for Kolkata, Chennai airport modernisation projects

(DNA 22/08/2006) New Delhi - The Bharti group hasn’t given up on the airport modernisation project. Last September, it had to reluctantly withdraw from the race to modernise the Delhi airport as its international partner, Singapore’s Changi, pulled out at the last moment.

But Bharti may be game for the next round of modernisation, particularly in Kolkata and Chennai. There are indications that, having started the upgradation process for Delhi and Mumbai airports, the government is now keen on moving fast to modernise Kolkata and Chennai airports.

In an interview to DNA Money, Bharti group chairman Sunil Bharti Mittal said, “When the opportunity comes, say in big cities like Kolkata or Chennai or somewhere else, we will examine it.”

Mittal, however, added, “At the moment, no work is going on in this project”.

It is learnt that plans for upgrading the Kolkata and Chennai airports are likely to be finalised within a month or so.

Currently, the Centre is in consultation with West Bengal and Tamil Nadu.

According to reports, Prime Minister Manmohan Singh also met civil aviation minister Praful Patel recently to discuss the upgradation models for Kolkata and Chennai airports.

While the Tamil Nadu government wants to opt for the public-private partnership model for the Chennai airport, West Bengal is not sure about allowing private players.

Earlier, the GMR-Fraport combine was selected for the Delhi airport modernisation project, while GVK-South African airports JV bagged the Mumbai airport upgradation project.

Last September, just two days before the bidding deadline for Delhi and Mumbai airport projects, the Bharti group expressed its inability to participate because its consortium partner, Changi, said it was not confident about meeting some of the conditions set in the tender.

Changi was concerned about a clause that a penalty to the tune of $80 million will have to be borne by the foreign partner alone, if the consortium winning the bid was unable to meet the government’s norms.

The Delhi-based DLF Universal was also part of the Bharti-Changi consortium.

After Changi’s decision to pull out of the project, the Bharti group said, “Bharti is dismayed at this development, as it was very enthusiastic about participating in this opportunity to create a world-class airport in Delhi.”

The company statement had added, “Bharti and DLF are confident about building a world class airport at Delhi, complying with all terms of the tender.

However, they cannot proceed without the commitment of Changi, as it is an essential qualification criteria to have an airport operator participate in the bidding process.”