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Private consortia take over Delhi, Mumbai airports

The joint venture by Bangalore-based GMR - which includes Frankfurt airport manager Fraport, a Malaysian airports subsidiary and an Indian fund as its partners - took over the management of the Indira Gandhi International Airport in New Delhi from the state-owned Airports Authority of India (AAI).

The Chhatrapati Shivaji International Airport in India’s commercial hub Mumbai was taken over by another consortium led by GVK Industries based in the southern city of Hyderabad. GVK has hooked up with a South African airport management company and fund for the project.

The formal handing over took place at midnight Wednesday, a AAI release said. The AAI continues to hold a 26-per-cent share in the two airports.

The joint ventures managing the two airports have been named the Delhi International Airport Limited and the Mumbai International Airport Limited.

Security, air traffic control, customs and immigration at both airports will continue to be handled by state agencies, IANS news agency reported, quoting officials.

The Indian government had signed agreements with the two consortia on April 4 after they won bids to upgrade and maintain the two airports in January.

Under the agreements, the consortia and AAI will jointly develop, maintain and operate the airports for a period of 30 years. The upgrade is to be completed in 36 months, officials said.

The airports at Delhi and Mumbai, with limited and dated infrastructure, have been unable to cope with the recent boom in India’s airline industry, leading the government to opt for privatization to speed up their modernization.