New Delhi, Sept 11: Union Cabinet tonight decided to set up separate joint venture companies with 74 per cent private equity for the creation of world class airports in Delhi and Mumbai, with the Airports Authority of India holding the remaining stake. Announcing this after a Cabinet meeting chaired by Prime Minister Atal Bihari Vajpayee, Civil Aviation Minister Rajiv Pratap Rudy told reporters that the selected private partners, who would not be allowed to bid for both the airports together, would simultaneously implement the two projects at Delhi and Mumbai.

AAI, along with other public sector entities, would together hold 26 per cent stake and would continue to be responsible for air traffic services and civil aviation security, he said. The two airports would 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.

Replying to questions, he said the private partners could be a consortium which could include foreign players.

It would be essential for the bidders to be operators of world class airports, he said, adding they would also be mandated to get security clearance from the Indian government for being shortlisted as a bidder. Bureau Report