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Final bids for Bangalore airport this week

A German-led consortium and a Swiss-led team will submit final bids this week to build an international airport in the technology capital of Bangalore, an Airports Authority of India official said on Monday.

"The deadline for the final reports to be submitted is April 20. The two shortlisted consortiums are expected to give detailed plans including how much they will invest in the project," the airports official said.

India's Karnataka state, where Bangalore is located, has shortlisted German construction group Hochtief AG and Swiss airport operator Unique Zurich Airport for a 74 per cent stake in the long-delayed project.

The Hochtief team includes Dusseldorf Airport while the Unique Zurich Airport bid is backed by German electronics and engineering group Siemens and Indian engineering and construction firm Larsen and Toubro.

Karnataka state has said it will announce the winning bid for the airport project by June this year.

The estimated Rs 10-billion Bangalore airport planned with private investment has been plagued by delays and controversies, disappointing firms eager to invest in infrastructure in India's hi-tech city.

In January this year, Prime Minister Atal Bihari Vajpayee kicked off construction of the airport which is scheduled to begin operations in 2004. The airport expects to handle five million passengers and 85,000 tonnes of cargo annually.

Six bidders entered the race for the project last year. Reliance group, one of India's largest conglomerates, was one of the players in the race but later withdrew its proposal.

The winning consortium will hold 74 per cent stake in the airport. Karnataka and the Airports Authority of India will each hold 13 per cent equity in the airport.

The Bangalore airport, if it takes off, will be India's second greenfield airport to be constructed with private investment. The first was in Cochin.

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