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Government receives bids for Bangalore airport

A German-led consortium and a Swiss-led team have submitted detailed feasibility reports to build an international airport at Bangalore, India's technology capital, an economic daily said on Wednesday.

Karnataka, where Bangalore is located, has shortlisted German construction group Hochtief AG and Swiss airport operator Unique Zurich Airport for a 74 per cent stake in the long-delayed project.

"We received documents from both the bidders on Monday. The evaluation will start now and the final player will be decided by June-end," the business daily quoted a special officer for the International Airport Project as saying.

The Hochtief team includes Dusseldorf Airport while the Unique Zurich Airport bid is backed by German electronics and engineering group Siemens and Indian engineering and construction firm Larsen and Toubro.

The estimated Rs 10-billion Bangalore airport planned with private investment has been plagued by delays and controversies. In 1998, a consortium led by India's Tata group backed out of the project, citing delays in government approval.

The airport is due to begin operations in 2004 and is expected to handle five million passengers and 85,000 tonnes of cargo annually.

The winning consortium would hold a 74 per cent stake in the airport. Karnataka, and the federal Airports Authority of India, would each hold 13 per cent equity in the airport.

The Bangalore airport would be India's second greenfield airport to be built with private investment.

The first was in the southern city of Cochin.

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