Reliance, Bharti to bid for airports

MUMBAI: The Ambanis and the Mittals seem set to fly into the aviation business. According to sources, Reliance Group company Reliance Infrastructure and Bharti Telecom, promoted by the Bharti Mittal group, are keen to bid for developing the Mumbai and Delhi international airports which are on the government''s privatisation list.
While Reliance Infrastructure has been involved with several infrastructure projects across the country, the Bharti Mittal group''s interest in the airports has come as a surprise to many analysts, especially because the group has thus far stuck to its core telecom business.
Both Reliance and Bharti officials declined to comment on the issue. Other corporate groups and international airport developers - like Changi Airport (Singapore), Fraport (Frankfurt) and the Sahara group - are also reported to be interested in the exercise.
Simultaneously, the government will also invite design bids for the two airports. Several top international designers are in the fray to give these airports a new look, which will be given to the selected private developer.
The list of designers includes Norman Fosters, which designed the Hong Kong International Airport; Kisho Kurokawa, which worked on the Kuala Lumpur International Airport; Hellmuth, Obata and Kassabaum, which designed the 5th terminal of London''s Heathrow airport; Arup Associates, which designed the fire safety works at the Hong Kong airport; Skidmore Owings and Merrill, which gave shape to the Sear Towers of Chicago; Hoch Tief who designed the Athens Airport; and the Zurich Airport Authority.
The group of ministers will meet in New Delhi on Thursday to take a final decision on the appointment of a financial advisor for the sale.
Five firms - Tata Economic Services, ABN-Amro Financial Services, KPMG, PricewaterhouseCoopers, and Ernst & Young - have been shortlisted.
The ministerial panel is expected to map out the privatisation details, which will be further discussed by the Cabinet-appointed Empowered Committee of Ministers.
The Naresh Chandra committee, which is also scheduled to meet on Thursday, will take up the issue of allowing 49 per cent foreign direct investment in Air-India and 26 per cent in domestic airlines.