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Delhi/Mumbai airport privatisation hits hurdle

Analysis

SYDNEY (Centre for Asia Pacific Aviation) - Airport privatisation processes are long and arduous no matter where they are, but perhaps especially so in India. Reports that the Bharti Enterprises-Singapore Changi Airport-DLF Universal consortium has withdrawn are a blow to the government on the eve of the submission of financial and technical bids, as they would have been considered lead bidders.

Changi Airport reportedly stated it could not commit to key performance conditions and penalties in the tender. Bharti Enterprises and DLF are unable to proceed without Changi, as the tender specifies that an airport operator must participate in the bidding process.

The Hochtief Airport-Piramal Holdings-L&T Holding and Macquarie Bank-Sterlite Infrastructure-Aeroports de Paris consortia are also reportedly considering withdrawing. That would leave five shortlisted bidders - enough to ensure a competitive tender - but not an ideal outcome for the government.

Unparalleled coverage of India's burgeoning aviation market, including latest news, data and in-depth analysis is contained in The Monthly Essential India: Airports, Airlines & Tourism. Click the icon below for more information.

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