The Group of Ministers, which will oversee the restructuring and modernisation of Delhi and Mumbai airports, has been reconstituted with the surprise inclusion of Defence Minister Pranab Mukherjee as its chairman.Apart from Mukherjee, the GoM will comprise Finance Minister P Chidambaram, Law Minister H R Bhardwaj and Civil Aviation Minister Praful Patel.Sources said the group would meet soon to give its formal approval to one of the more debated decisions taken by the new regime. While private sector stake in the airports project remains 74 percent, Patel had earlier announced that FDI participation would be limited to 49 percent. The change can be officially notified only after the GoM’s approval. In this context, Mukherjee’s inclusion in the group is interesting. The NDA had made the Disinvestment Ministry a part of the GoM. With air traffic control continuing to remain with the government, there was hardly any role seen for the Defence Ministry. Now that the Disinvestment Ministry has been done away with, there was a vacancy in the GoM. Sources said that Mukherjee was asked to fill it because, apart from a senior member of the Cabinet, his presence could reassure the Left parties, which have raised concerns over the security aspect of the exercise. Apart from approving the cap on FDI, the GoM has to finalise the selection of a global technical assistant for the project. It’s learnt that Air Plan, an Australian company, has been recommended by an inter-ministerial group from a list of six GTAs shortlisted earlier. The GTA will be responsible for making a 20-year development plan, which involves a detailed masterplan with a projection of the short-term capital expenditure needed to meet the immediate demands of heavy air traffic at these airports. It will also evaluate the existing assets at these airports, including the maintenance schedule. These assessments will be part of the documents that will be handed over to the shortlisted bidders, along with the request for a detailed proposal. The last date for submitting the expressions of interest is July 20 after which the shortlisting process will begin. The GoM will also need to give its approval to the selection of Amarchand Mangaldass as legal consultant for the project and finalise an accounting firm for the exercise.
