India reopens airport privatisation complaint

Gavin Lipsith

4-Jul-2006

A failed bidder for the Mumbai and Delhi airport management contracts has filed a fresh complaint alleging irregularities in the privatisation process

The Indian supreme court is to begin proceedings on a fresh complaint against the government's airport privatisation this month, according to Reuters. The complaint was filed by Indian firm Reliance Airport Developers over alleged irregularities in the privatisation process at Mumbai and Delhi airports, where the government awarded modernisation contracts in February.

Reliance's initial complaint was dismissed by a lower court in April, but the supreme court accepted an appeal and will begin hearings on July 18. The new process could hinder the appointment of new retailers at the airports. The airports were both included in a tender called for new duty-free space at 10 Indian airports in May, although private operators are likely to review the retail situation once their contracts come into effect.

Delhi airport is being upgraded by a consortium led by local infrastructure group GMR Group with Fraport, Malaysia Airports, Airports Authority of India and infrastructure firm IDFC. Mumbai was awarded to a consortium led by GVK Industries and Airports Company of South Africa.

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