Sources said that Airports Authority of India (AAI) has been barred from participating in the bidding process
Seven bidders, including GMR Group, GVK Power and Infrastructure Ltd and Essel Infraprojects Ltd have been shortlisted for Bhogapuram Airport in Andhra Pradesh, sources told Moneycontrol.
The shortlisted bidders are Reliance Infrastructure (Reliance Airport Developers Pvt Ltd), GMR Group, GVK Power & Infra Ltd, Essel Infraprojects Ltd, Doit Urban Infranetwork Ltd, National Investment and Infrastructure Fund (NIIF) and Fairfax India Holdings.
“They have been given three months’ time to submit final request for proposals (RFP) for the greenfield airport,” said people aware of the development.
The bidders have been selected after receiving approval for their request for qualification (RFQ).
Sources said that Airports Authority of India (AAI) has been barred from participating in the bidding process. In June this year, the Andhra Pradesh Airports Development Corporation Ltd (APADCL) had issued fresh tender barring all government agencies to participate in the bidding process.
Emails sent by Moneycontrol to all the shortlisted bidders didn’t elicit any response.
Bhogapuram International Airport will be constructed at Bhogapuram, near Vishakhapatnam in AP. It will be built at an approximate cost of Rs 42.1 billion. The government had given 'in-principle' approval to Bhogapuram International Airport Corporation Limited (BIACL) for the establishment of the airport in Oct-2016. It is expected to handle more than 18 crore passengers at a time.
The government has set two years’ time to complete the project. Starting next year, the project should be complete by December 2020.
The project seem to be in line the with Centre’s proposal to privatise select airports. Media reports have suggested that NITI Aayog, chief executive officer (CEO), Amitabh Kant led committee has proposed to privatise six airports, one each in Ahmedabad, Lucknow, Guwahati, Jaipur, Thiruvananthapuram and Mangaluru by leasing the airports for 50 years.“Unlike Delhi and Mumbai, where Airports Authority of India was a joint venture partner for GMR and GVK, his time the panel has decided to allow 100% private participation for operation, development and management. A foreign investor can also be the sole developer,” reports suggested.Subscribe to Moneycontrol Pro and gain access to curated markets data, exclusive trading recommendations, independent equity analysis, actionable investment ideas, nuanced takes on macro, corporate and policy actions, practical insights from market gurus and much more.