Responds to the request for proposal floated by CIDCO
Despite being partners in two start-up airline ventures, the Tatas have shown interest in investing in airport projects as well. Two unlisted companies of the Group, Tata Realty & Infrastructure Ltd. and Tata Projects, among 20 companies, have responded to the request for proposal (RFP) floated by City and Industrial Development Corporation of Maharashtra Ltd. (CIDCO).
Tata Realty & Infrastructure has reportedly initiated talks with Ferrovial SA of Spain, another company that has responded to the RFP, to jointly bid for the development of the Navi Mumbai airport.
Tata Reality Managing Director and CEO Sanjay Ubale has reportedly confirmed the company’s intention to partner Ferrovial to bid for the airport project as existing rules do not allow airline companies to run airports in India to prevent conflict of interest.
According to Mr. Ubale, the company could pick up a minority 10 per cent stake in the proposed joint venture. Mr. Ubale did not respond to text message and e-mail queries from this correspondent concerning this and the company’s plans for airport projects.
Mumbai International Airport Pvt. Ltd. (MIAL), the GVK-led consortium that operates the airport in Mumbai, has the first right of refusal to build and manage the proposed new airport at Navi Mumbai.
Under this clause, if MIAL’s bid falls short by 10 per cent or less from the highest bidder, it would be allowed to match that offer.
The Rs.14,500-crore Mumbai’s second airport project has been delayed due to obstacles in land acquisition, and the State government is planning to make it operational by 2018.