AAI shortlists six cos for airports revamp

11-Apr-2008

About Modernisation and Greenfield Airport

NEW DELHI: The Airports Authority of India (AAI) has shortlisted six companies, including domestic major L&T, for executing the Rs 3,800-crore Chennai and Kolkata airports modernisation projects. About 15 international construction majors had approached the AAI to get these projects.

According to sources, the shortlisted companies include ITD (Hong Kong), Ssangyong (Malaysia) and M/s TAV Tepe Akfen (Turkey). L&T, which has bagged contracts for modernising Delhi and Mumbai airports from GMR and GVK, is also in the race for Kolkata and Chennai. The foreign companies have Indian partners for their airport JVs.

AAI is learnt to have shortlisted three companies for being appointed as project management consultants, who would oversee the implementation of these two projects on a turnkey basis. Leading firms like US-based Louis Berger Group are among the shortlisted companies, said the sources.

The Kolkata airport will be modernised at a cost of Rs 2,000 crore and Chennai for Rs 1,800 crore. The AAI had received 11 applications for Kolkata and 12 for Chennai expansion programmes from construction majors of Korean, Thailand, America, Europe and other countries. The global names included Greece's AEGEK General Construction; Malaysia's Muhibbah Engineering and Britain's largest privately owned construction firm Laing O'Rourke.

The committee of infrastructure headed by PM Manmohan Singh had approved the Kolkata modernisation project last April and Chennai proposal in June. The government had initially promised that work would start in January or by February, 2008.

Kolkata airport modernisation has so far got pre-Public Investment Board (PIB) clearance but awaits PIB and CCEA nod. Chennai is yet to get all these three clearances. Aviation minister Praful Patel wants these projects to begin on time so that they can meet the 2010-11 deadline. So even as technical approvals are awaited, AAI was asked to go ahead and do its bit so that work can begin on ground as soon as all required clearances come.

"Work was to begin this February. Which means already there is a delay and unless clearances come in fast, meeting the deadline of 2010-11 could be an uphill task," said sources, reflecting a "general feeling" that AAI projects don't get the same sense of urgency as private ones do.

Tamil Nadu government has also identified 5,000 acres of land near Sripeumbudur for building the second airport for Chennai. AAI is doing pre-feasibility studies as the state government wants the second airport to be ready in time.

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