Close on the heels of Changi dumping the joint proposal with Bharti for bidding for the airport modernisation project, German player Hochtief Airport has expressed 'unwillingness' to participate in the bid.
Hochtief had joined hands with Indian majors L&T and Piramal Holdings to participate in the bidding, sources said, adding that the foreign partner has virtually opted out of the consortium and the Indian players were looking for options of whether they could take some other partner.
The resistance appears to be on the condition that a hefty penalty could be imposed on the foreign partner in case of delay in execution of the project.
As per the conditions of tenders, the modernisation would be executed by a joint venture between the Airport Authority of India and the consortium comprising Indian and foreign partners.
Meanwhile, Essel group, promoted by Subhash Chandra came in support of the conditions, saying these would keep at bay 'non-serious players'. Essel and its foreign partner TAV group would submit their bid tomorrow, Essel spokesperson told PTI.
Kaul said the condition of technical compliance for eligibility to the extent of 80 was a must for any bidder, failing which the earnest money of about Rs 50 crore (Rs 500 million) would be forfeited, along with Rs 300 crore (Rs 3 billion) performance guarantee stipulation would deter 'non-serious' players.
"Participation in the project should not be seen as an opportunity to make fast buck. These conditions would ensure that only those who are committed to development of infrastructure would participate in the process," he said.
Under the operation management and development agreement of the bid document, the joint venture company of the winning bidders and Airports Authority of India would have to carry out mandatory capital projects at Delhi and Mumbai airports by March 31, 2010.
They are also required to spend Rs 2,800 crore (Rs 28 billion) for Delhi and Rs 2,600 crore (Rs 26 billion) in Mumbai over the next five years and the eight bidders would have to submit their technical and financial bids by Wednesday.
The consortia in the race so far include Hochtief Airport GmbH-Piramal Holdings Ltd-L&T Holding, Macquaire Bank Ltd-Sterlite Infrastructure Pvt Ltd-Aeroport Du Paris and GMR Infrastructure Ltd-GMR Energy-Fraport AG India Development Fund-Malaysia Airport Sdn Bhd.
Besides this, Pan India Paryatan Ltd-TAV Investment Construction and Operation Corporation-Ganjam Trading Pvt Ltd-SNC-Lavlin, GVK Industries Ltd-Airports Company South Africa Ltd-Old Mutual Asset Managers-Bidvest Group Ltd, Reliance Airport Developers Pvt Ltd-Reliance Energy Ltd+Aeropuertos Servicios Auxiliiare and D S Construction Ltd-Flughafen Munchen GmbH-Hirachandani Properties Pvt Ltd-Ebony Retail Holdings Ltd are also in fray.