Tatas and Changi work on airport modernisation

New Delhi, Feb 21: The Tata group has entered the business of airport modernisation in partnership with Singapore-based Changi Airports International (CAI).

The Tata-Changi venture will have 51:49 equity stake with no upside or downside limits on investments, said CAI's vice-president for India region Ng Tim Peng.

''We'll explore possibilities of greenfield as well as brownfield projects in the booming Indian aviation market,'' he told reporters on the sidelines of Inter Airport India seminar and exhibition which kicked off here today.

Mr Tim said the joint venture will be open to offloading some portion of equity in favour of other airport-related businesses.

Tatas' foray into the aviation sector comes after a considerable time since it made an abortive bid more than a decade ago to enter the aviation business in India in partnership with Singapore Airlines.

Since then, the group has steered clear of this sector, except for picking up a small equity stake in SpiceJet recently.

The Tatas were not involved with the modernisation of Delhi and Mumbai airports that saw bids from leading Indian corporate groups such as GMR, GVK, Zee, Reliance Anil Ambani Group and DS Constructions.

While Delhi and Mumbai airports modernisation will involve over Rs 10,000 crore, the government is now keen to push forward the modernisation of not only the metro airports of Chennai and Kolkata but also plans to rope in the private sector for the city-side development of 35 non-metro airports. Besides, plans are also being discussed about having another new airport in Mumbai for which the International Civil Aviation Organisation (ICAO) has cleared the feasibility report.

CAI is a wholly-owned subsidiary of the Civil Aviation Authority of Singapore, which owns and operates Changi airport.

It has actively been searching for a suitable Indian partner for some time now.

Late last year, senior CAI officials had indicated that a number of leading Indian business houses from diverse fields, including those in construction and real estate development, were interested in a possible joint venture to pursue the proposed modernisation and development of Kolkata and Chennai airports.

CAI provides consultancy and management services to many airport projects in countries all over the world including China, Fiji, India (Mumbai and Bangalore), the Maldives, Pakistan, the Philippines, Seychelles and Russia.

The scope of services covers major areas such as airport master planning, review of terminal operations, air traffic forecasts, feasibility studies as well as providing customised aviation training programme.

The company has also been involved with manpower training of staff at Mumbai airport after its management control was transferred to a consortium led by the GVK group.

In 2005, Changi had partnered with Bharti to bid for the modernisation of Delhi and Mumbai airports.

UNI

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