GMR submits Rs 500-cr bank guarantee for Delhi airport modernisation

BY A CORRESPONDENT
February 9, 2006

The GMR-Fraport consortium, which was selected for modernisation and restructuring programme of Delhi airport, has submitted a Rs 500-crore bank guarantee to the Indian government. The guarantee was furnished within a day of Airport Authority of India (AAI) making the demand and close on heels of the end of employees' strike.

"The bank guarantee is with the Government and shows the group's commitment to go ahead with the modernisation and restructuring programme of Delhi airport," a senior GMR official was quoted as saying. The members of the consortium include Fraport, operators of Frankfurt airport, and Malaysia airport.

The other successful bidder for the airports project, GVK group, is yet to submit the bank guarantee. The group has chosen to develop Mumbai airport and according to industry sources, it is planning to submit the guarantee in the next couple of days.

The GVK group has tied up with the South African Airports for upgrading the airport in Mumbai.

Meanwhile, another bidder Sterlite-Macquire-ADP of Anil Agarwal's Vedanta group has protested against its exclusion from the financial bids claiming that its offer was higher than that of GVK industries and that the government stood to lose Rs 2,000 crore in the revenue share.

Sterlite has written a letter to the members of Empowered Group of Ministers (EGoM) on the issue.