Airport JV agreement signed

     New Delhi: Despite stiff opposition from the Left parties and Airports Authority of India (AAI) employees, the government on Tuesday signed shareholders agreement and other documents for setting up joint venture companies for the privatisation of Delhi and Mumbai airports. Moving ahead with its modernisation plan of the country's busiest airports, the government signed Operation, Management and Developer Agreement (OMDA) with joint venture partners - GMR- Frapord and GVK-South African airports that have bagged the contracts for modernisation of Delhi and Mumbai airports. Airport Authority of India Chairman K Ramalingam and Director Finance V D V Prasad Rao in presence of Civil Aviation Minister Praful Patel and Secretary Ajay Prasad signed the Operation, Management and Developer Agreement. "The OMDA and the shareholders agreements have been signed. The JV companies are in place and their Boards are meeting today," Civil Aviation Minister Praful Patel told reporters after signing of the agreement.

     OMDA agreements lay down the guidelines for the operation of the two joint venture companies. Under the agreement the AAI grants the right to the joint venture companies to operate, maintain, develop, design, construct, upgrade, modernise, finance and manage the airports. The joint ventures that are required to be formed and registered under the Companies Act have been signed between the Airport Authority of India and the developers GMR and GVK consortiums that have got the contracts. While the government has 26 per cent holding in the two newly- formed ventures, GMR and GVK have 74 per cent stake each in the Delhi and Mumbai airports. Now, a new board of directors--including representatives from the private developers --will be put in place. The Agreement has been signed for a period of 30 years, which can be extended for another 30 years.

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