The opening up of skies to international players is on course with the Cabinet approving 74% equity participation in Delhi and Mumbai airports. Civil aviation minister Rajiv Pratap Rudy told reporters after the Cabinet meeting that the Airports Authority of India would hold the remaining equity and retain control over civil aviation security and Air Traffic Control at these airports. The move is expected to stimulate tourism and create a global aviation hub. Mr. Rudy said the private partners could be a consortium, which could include foreign players of international repute and operators of world-class airports. There will be a separate private partner for each airport.

Prospective bidders would first require a security clearance from the government. The airports at Delhi and Mumbai will be given on concession to the joint venture partner for a period of 30 years, with a provision for extension by another 30 years, subject to mutual agreement. An empowered committee has been constituted to decide the financial parameters for the evaluation of financial bids and tariff retime. The committee comprises of the ministers of civil aviation, finance, disinvestments and law. According to Mr. Rudy, the entire bidding process will be complete within eight months, upon which the project will be handed over to the selected bidder. The successful bidder will be required to submit a concept design of the airport along with the bid, which will be subject to the approval of the government with the assistance of a global technical advisor.

The private player will be given the freedom to undertake land-related non-aeronautical activities to generate revenue. The government has additionally decided to develop a suitable human resource package to address the concerns of employees of AAI. Employees working at the existing airports will be initially transferred to the joint venture company on deputation for three years, with the option to return to AAI at the end of the deputation period or get absorbed by the joint venture company.