Bharti Changi to go on with airport projects bid

Bharti Changi Airport Ltd, a joint venture between Bharti Enterprise and Changi Airport, which had expressed an interest in bidding for the management and development of Delhi and Mumbai airports, will pursue with the project even after the policy changes announced by the Union Civil Aviation Minister Parful Patel on Wednesday. 
 
According to sources associated with the project, the consortium does not see the new policy as a hurdle to its plans and it will wait for the final guidelines to go ahead with the project. 
 
"Bharti and Changi are committed to the project. It is little premature for us to comment on the policy announced on Wednesday as we are still awaiting the details from the relevant authorities," said a Bharti Changi Airport Ltd spokesperson. 
 
In the proposed new structure, the government wants to limit the role of the foreign partner to the running of the airports and providing technology support. 
 
However, the final say in the project will be with the Indian partners of the venture, who will have a 51 per cent stake in the company and manage the special purpose vehicle. 
 
"The Indian partners in the venture will have greater role to play and the Airport Authority of India, with a 26 per cent stake, will

not be a sleeping partner in the venture," said a civil aviation ministry official. 
 
Besides, there is also a proposal to limit the number of Indian partners in the venture to ensure that the ownership of the company is not spread amongst various partners. 
 
Civil aviation ministry sources also said that they would look at steps such as changes in the articles of association of the venture as well as in the joint venture agreement to limit the role of the role of the foreign partner. 
 
According to civil aviation ministry sources, the government does not think the policy of limiting FDI to 49 per cent will put an end to the interest shown by international ventures in the project. 
 
"This policy of 49 per cent is followed in many countries across the world which have built modern airports. Many Indian companies and financial institutions have indicated their willingness to put in the money," the official said. 
 
Besides, the government also wants greater protection from the new management of the airports for AAI staff in the two airports. Sources also said that there could be conditions to retain the existing employees for more that the initial proposal of two years. 
 
"We are devising a scheme where for an initial period, the entire workforce would be absorbed by the new company," the civil aviation official said.