Tuesday, September 13 2005 15:22 Hrs (IST) - World Time -

New Delhi: A day after the Bharti-Changi consortium dumped plans to participate in the airport modernization programme citing government conditions, Subhash Chandra-promoted Essel group today (Sept 13, 2005) welcomed the terms of the tender and said it would submit its bid tomorrow (Sept 14, 2005).

Essel group and TAV group of Europe have joined hands to bid for the modernization of airports in Delhi and Mumbai under the name PanIndia Paryatan-Tav combine.

"We feel the terms of tender are right steps to ensure that only serious players remain in the fray. We will submit our bid tomorrow," Essel group spokesman Ashish Kaul told sources.

In a statement, Bharti group yesterday (Sept 12, 2005) expressed its inability to participate in the bidding of modernization and privatization of Delhi airport as its airport operator, Changi had stated "unwillingness to commit to the key terms of the tender conditions."

Changi airport of Singapore had conveyed that they were not confident about meeting the conditions set in the tender, the statement said and added that the consortium could not proceed without the commitment of Changi, as it is an essential qualification criteria to have an airport operator participate in the bidding process.

Kaul said the condition of technical compliance for eligibility to the extent of 80 was a must for any bidder, failing which the earnest money of about Rs 50 crore would be forfeited, along with Rs 300 crore performance guarantee stipulation would deter 'non-serious' players.

"Participation in the project should not be seen as an opportunity to make fast buck. These conditions would ensure that only those who are committed to development of infrastructure would participate in the process," he said.

Under the Operation Management and Development Agreement (OMDA) of the bid document, the Joint Venture Company of the winning bidders and Airports Authority of India (AAI) would have to carry out mandatory capital projects at Delhi and Mumbai airports by March 31, 2010.

They are also required to spend Rs 2,800 crore for Delhi and Rs 2,600 crore in Mumbai over the next five years and the eight bidders would have to submit their technical and financial bids till tomorrow.

The eight consortia in the race so far include Bharti Enterprises-Singapore Changi Airport-DLF Universal, Hochtief Airport GmbH, Piramal Holdings Ltd, L&T Holding, Macquaire Bank Ltd, Sterlite Infrastructure Pvt Ltd, Aeroport Du Paris and GMR Infrastructure Ltd, GMR Energy, Fraport AG India Development Fund, Malaysia Airport Sdn Bhd.

Besides, Pan India Paryatan Ltd-TAV Investment Construction and Operation Corporation, Ganjam Trading Pvt Ltd-SNC-Lavlin, GVK Industries Ltd-Airports Company South Africa Ltd, Old Mutual Asset Managers-Bidvest Group Ltd, Reliance Airport Developers Pvt Ltd-Reliance Energy Ltd, Aeropuertos Servicios Auxiliiare (ASA) and D S Construction Ltd, Flughafen Munchen GmbH, Hirachandani Properties Pvt Ltd, Ebony Retail Holdings Ltd are also in fray.