People's Democracy

Brief Chronology

• Cabinet meeting of the NDA government approves restructuring of Delhi and Mumbai airports by adopting joint venture route with 74 per cent equity of a private consortium and 26 per cent to Airport Authority of India and also constitutes an Empowered Group of Ministers (EGOM) for implementing the decision on 11th September, 2003.

• The EGOM meets on 9th November, 2003 under the Chairmanship of the then Finance Minister.

• The Inter Ministerial Group (IMG) is constituted by Ministry of Civil Aviation (MCA).

• AAI Amendment Bill passed in the Monsoon Session of Parliament in June 2003 authorising AAI to transfer the operations and management of its existing airports by way of long term lease to private players. The Act notified with effect from 1.7.2003.

• EGOM approves appointment of financial consultants M/s ABN Amro on 22nd December, 2003. Contract executed by AAI with the consultant on 26th April, 2004 effective from 5th January, 2004.

• Expressions of Interest (EOI) from interested parties to acquire 74 per cent equity stake in the JVC and the complete documentation after EGOM approval on 15th February, 2004. Last date of submission for EOI was 4th June, 2004.

• May-June elections, formation of the UPA government and adoption of National Common Minimum Programme.

• EGOM reconstituted under the Chairmanship of Defence Minister on 15th June, 2004.

• The reconstituted EGOM does not undertake any review of the earlier Cabinet decision; only putting a cap of 49 per cent on FDI within 74 per cent of the private equity in the JVC and equity participation of Indian scheduled airlines revised upwards from 5 per cent to 10 per cent.

• The last date of submission of EOI extended to 20th July, 2004.

• EGOM considers and approves the appointment of M/s Air Plan, Australia as the Global Technical Advisor and M/s Amarchand & Mangaldas & Suresh A. Shroff & Co. as Legal Consultant on 25.06.2004.

• AAI appoints M/s Thakur, Vaidyanath Aiyar & Co. as Accounting and Tax Advisor for the Transaction in August, 2004.

• Ten entities submitted EOIs by 20th July, 2004. Nine entities excluding M/s Videocon were shortlisted.

• The IMG was reconstituted in October, 2004 replacing Additional Secretary and Financial Advisor of MCA by Secretary, MCA as the Chairman of the Group (with a mandate for submitting its report within 15 days). EGOM meeting postponed and a Committee of Secretaries (COS) formed for advising EGOM.

• EGOM approves key principles of the Request for Proposal (RFP) document along with the draft transaction documents.

• Separate RFP document for Delhi and Mumbai airports and the draft transaction documents were issued to nine short listed bidders on 1st April, 2005.

• After consultation finalised frozen issues on 30th August, 2005.

• Six binding offers for Mumbai airport and five such offers covering both financial and technical bids submitted on 14th September, 2005.

• Evaluation of technical bids undertaken by the consultants which shortlisted two consortia one led by M/s Reliance and the other M/s GMR.

• A Government Review Committee (GRC) constituted for independent review of the evaluation by consultants.

• Report of consultants and report of GRC to be finalized by the EGOM.

• The EGOM slated for finalizing the process on 21st December, 2005 on the basis of IMG review.

• 27th December, 2005 – a Technical Sub-Group formed to help the COS.