The Bharti consortium, on 12 September 2005, expressed its inability to participate in the Delhi airport modernization project following the backing out of Changi Airports of Singapore, a consortium partner. Other members of the consortium included DLF Universal and the Bharti Group.

Hochtief of Germany, which is bidding for the Mumbai airport project, in consortium with Larsen & Toubro and Primal Holdings, is also likely to drop out of the race.

The main impediment apparently is the $80 million (Rs.350 crore) penalty that the foreign partner in a consortium would have to pay if Indian government-laid conditions are not fulfilled.

The eight shortlisted bidders have time up to 14 September 2005 to respond with their technical and financial bids. For a consortium to qualify for bidding, it must have at least one airport operator.

If Hochtief eventually pulls out, there will be six bidders in the fray. The Indian partners leading the consortia are GMR Infrastructure Ltd, GVK Industries, DS Construction Ltd, Starlite Infrastructure Ltd, Pan India Paryatan Ltd and Reliance Airport Developers Pvt Ltd.

This is the second time that Changi Airport had turned away from Indian aviation infrastructure projects. In July 1998, it withdrew from participating in the development of the greenfield Devanahalli airport project in Bangalore. The Tata Group and Raytheon of US were other partners in the consortium.

Also See:

Mumbai-Delhi Aiport modernisation: Bid submission by 14 Sep (31-Aug-05)

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