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Airport modernisation contracts by Jan 31

    New Delhi: The Empowered Group of Ministers (EGoM), headed by Defence Minister Pranab Mukherjee, today decided that the contracts for the Rs 5,400 crores (1.2 billion dollars) projects at Delhi and Mumbai Airports would be awarded by January end. Emerging out of the EGoM meeting here today, Civil Aviation Minister Praful Patel told reporters that January 31 was set as the deadline for awarding the contracts for projects at Delhi and Mumbai airports. He rejected the suggestion of the possibility of re-bidding in view of the valuation controversies. However, Patel refused to give any details of the decision taken in the EGoM meeting, saying that minutes were to be finalised and signed by the EGoM Chairman Pranab Mukherjee.

   The minister said that the financial bids would be opened in a day or two and the contracts for the two airports would be awarded "within the deadline". "We have considered all the views that were expressed in the matter, including those of the Committee of Secretaries, the panel led by E Sreedharan and various others," he said, adding, "All issues have been resolved. There will be no re-bidding," the Minister asserted. He said that both the airports would be modernised through "the joint venture route and the final details would be announced shortly". The shortlisted bidders would have to form two joint venture companies for the development of Delhi and Mumbai airports with the Airports Authority of India (AAI). Finance Minister P Chidambaram, Commerce Minister Kamal Nath and Law Minister H R Bhardwaj are members of the EGoM besides Mukherjee and Patel. The EGoM considered the broadening of the criteria for the bid process in the light of the recommendations of the Group of Eminent Technical Experts (GETE) headed by Delhi Metro Chief E Sreedhararn, by allowing more than one bidder for each of the two metro airport projects.

    The Sreedharan-led panel had recommended lowering of the marks received by the Reliance-led consortia below the qualifying levels on account of managerial capability and transition plan. The panel had also proposed the setting up of a Special Purpose Vehicle (SPV) with the Airports Authority of India to take the process forward. The employees of the Airport Authority on India (AAI) had extended their support to the recommendations of the Sreedharan Committee. They feel that the Government has ignored the panel's view in the same way as their own pleas were brushed aside. Meanwhile, the Revolutionary Socialist Party (RSP), a Left constituent, has expressed its opposition to the inclusion of bidders rejected by the GETE to include more bidders in the race. It feels that the process lacks transparency and wants the Government to hand over the task to the AAI. RSP leader Abani Roy has also written a letter to Prime Minister Dr. Manmohan Singh in this regard, saying, "Such a move will be biased in favour of certain parties and will be a matter of investigation". "I fear that this is being done to deliberately weaken and eventually deal a deathblow to AAI", Roy added. It is learnt that GETE have downgraded Reliance-led consortium below the qualifying level of 80 points and lowered the marks of the GMR-Fraport consortium during the fresh evaluation. However, the ranking of bidders is said to be done as per the standards adopted by the global technical advisor Airplan.
-Jan 24,  2006

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