Overlooking opposition from the Left parties and airport employees, the government on Tuesday signed two agreements to set up joint venture companies between Airports Authority of India and the GMR and GVK groups to hand over the Delhi and Mumbai airports for modernisation.
"The OMDA and the shareholders agreements have been signed. The JV companies are in place," Civil Aviation Minister Praful Patel told reporters after signing of the agreements.
The OMDAs (operations, maintenance and development agreements) and the shareholders agreements were signed by AAI chief K Ramalingam and AAI Director V D V Prasada Rao in the presence of Patel and civil aviation secretary Ajay Prasad.
Even as the agreements were being signed at the Ashoka Hotel in New Delhi, the employees took out a procession and later staged a demonstration at the Ministry headquarters at Rajiv Gandhi Bhavan. A large posse of police and CISF personnel were present to prevent any untoward incident.
Responding to questions, Patel said the initial deposit of Rs 150 crore each would be paid by the two groups "within a week, following which the process of transition will take place."
Asked whether the concerns of Left parties about the proceedings of Tripartite Committee on airport modernisation were considered, the Minister said: "We have made it clear that the issue of Delhi and Mumbai airports cannot be revisited and there is no room for negotiations on this front."
However, the committee, comprising representatives of the employees, the AAI and the ministry, would consider all issues concerning the employees' future and the modernisation of other airports, Patel said.
The Left parties have been demanding that the tripartite panel consider the issue of modernisation of the two metro airports too.
Patel refused to comment on the case filed by Anil Ambani's Reliance group against the modernisation process in Delhi High Court, but said the court has "permitted us to proceed" with signing of the OMDA and shareholders agreements.
Meanwhile, G V Krishna Reddy, CMD of the GVK group who signed the agreement for the modernisation of Mumbai airport, said: "We have the provisional license to operate the airport."
Asked when the airport would actually be handed over to them, he said: "The ball is in the government's court, but I believe they are planning to do this as soon as possible."
Observing that the group was planning to invest Rs 5,000-7,000 crore (Rs 50-70 billion) in five years, Reddy said: "My team is working hard to make it (modernisation work) happen. We will be paying Rs 200 crore (Rs 2 billion) as the first tranche to the government, including Rs 150 crore (Rs 1.50 billion) as the initial deposit very soon."
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