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Rediff.com  » Business » GMR, GVK take over Delhi, Mumbai airports

GMR, GVK take over Delhi, Mumbai airports

Source: PTI
May 03, 2006 19:40 IST
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Private players GMR and GVK groups formally took charge of the managements of the Delhi, Mumbai airports with a view to make them world-class airports.

However, the unions expressed serious concern at what they described as a "heinous job done behind the back of the employees" and warned of trade union action any time.

The JV companies, in each of which Airports Authority of India holds 26 per cent stake, started formal operations with short-term plans to changeover the two airports.

However, the full transition of management control to the JV companies would be effective from August 1.  The three-month transition period has been granted to avoid teething trouble in the takeover process.

While Delhi's Indira Gandhi International Airport has been taken over by the company called Delhi International Airports Ltd, the Mumbai airport will be taken over by Mumbai International Airports Ltd.

The two companies have promised to bring changes in the airport environment and chalked out plans of various phases.  In the first few days, steps would be taken to reduce the queue time, make available trolleys and provide clean drinking water and toilets and proper seating place.

These steps do not involve any construction activity, Jatin Aneja, a partner in the legal consultant firm Amarchand, Mangaldass and Shroff, which oversaw the entire privatisation process, told PTI.

Describing the restructuring process as one of the biggest in the world at this moment, Aneja said in 20 years, the revenue generation from one airport would touch about $1.2 billion, of which AAI would get a major share.

Meanwhile, AAI employees joint forum leader M K Ghoshal warned that the staff had resolved "not to join any private party but continue working under the AAI".

Complaining that unions had not been consulted before transferring management control of the airports "in the dead of the night", he said the Tripartite Committee on airport modernisation was ignored and "such manipulation will not be tolerated". He, however, refused to divulge the protest plan.

The handing over of the two major metro airports comes in the wake of the AAI signing two sets of agreements with the GMR and GVK consortia on April 4 to set up the joint venture companies for the two airports.

For the Delhi airport, the GMR led consortium comprises GMR Infrastructure, GMR Energy, GVL Investments, Fraport AG Airport Services Worldwide, Malaysia Airports Sdn Berhad and India Development Fund.

The consortium for Mumbai airport comprises GVK Ind., Airports Company South Africa and The Big Vest Group Ltd.

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