|A view of the new airport at Chennai|
Tata Realty and Infrastructure Ltd (TRIL) plans to participate in the airport privatisation projects in the country has hit a road block. The company has decided to opt out from the race for Chennai airport as the current bidding norms do not allow airlines or its group entities to own more than 10 percent in the special purpose vehicle selected to manage airports.
Tatas and Singapore Airlines have formed a 51:49 percent joint venture to start a full service domestic airline in India and has secured a clearance from Foreign Investment Promotion Board.
In September the Airport Authority of India floated request for qualification for privatisation of six airports including Chennai, Kolkata, Guwahati, Ahmedabad, Lucknow and Jaipur. A meeting with prospective bidders was held in the same month and eleven companies including Infrastructure Leasing and Finance Services, Essar Infrastructure, Tata Projects, Tata Realty and Infrastructure, GMR Group and Anil Ambani’s Reliance Group evinced interest in bidding for the privatisation programme of the Chennai and Lucknow airports.
Full report here Business Standard