Larsen & Toubro has formed a consortium with the Ajay Piramal-controlled Piramal Enterprises and Hochtief Airport GmBH of Germany to participate in the privatisation of the Mumbai international airport. 
 
L&T has also joined hands with the Mittal-controlled Bharti Enterprises and Singapore's Changi Airport to bid for the modernisation-cum-privatisation of the Delhi international airport. 
 
The estimated investment in the modernisation of the two metro airports would be Rs 4,500-5,000 crore (Rs 45-50 billion), sources told Business Standard. 
 
A Ramakrishna, deputy managing director and president (operations) of L&T, said, "In partnership with Siemens and Zurich Airport, we have proved ourselves by setting up a world-class airport in Bangalore. Our experience will play a vital role in winning the bid for the Delhi and Mumbai international airport modernisation."

Ajay Piramal, chairman of Piramal Enterprises, confirmed that L&T and Piramal Enterprises were joining hands, but declined to comment further. 
 
The new government's rules cap foreign company participation in the privatisation of airports at 49 per cent. 
 
While Indian companies or institutions can hold a 25 per cent stake, the Airports Authority of India will hold the remaining 26 per cent. This is in contrast to the earlier proposal where the foreign direct investment component was to be 74 per cent, with AAI holding the remaining 26 per cent. 
 
As per the airport modernisation agreement, the successful bidder will not only undertake the modernisation programme, but will also manage the airport after it is modernised. 
 
The assets of the two airports will be transferred to a separate company that will be leased to the successful bidder for 30 years, after which the lease will be renewed for another 30 years. The government will, however, continue to control air traffic at the airports and will also manage security. 
 
Other international companies that have evinced interest in the modernisation of Indian airports include companies that run airports in Frankfurt, the United Kingdom, South Africa, the Netherlands and Malaysia.