R-Infra sets sights on international airports

MUMBAI: After bagging the contracts to develop five non-metro airports in Maharashtra, Reliance Infrastructure is gearing up to bid for new international airports in Navi Mumbai, Pune, Noida and Goa, says a senior official. The company, part of Reliance-Anil Dhirubhai Ambani Group (R-ADAG), may tie-up with international airport developers for bidding for these projects, said Vidya Basarkod, business head of Reliance Airport Developers Private, the wholly-owned company of Reliance Infrastructure. The total cost of these projects is pegged at Rs24,000 crore.

According to Ms Basarkod, the company may bid for these projects jointly with its partner ASA of Mexico which designs, builds and operates airport terminals. It may also consider joining hands with a new foreign partner.
Aviation analysts said Reliance Airport Developers, along with its Mexican partner, is not well-equipped to bid for metro projects.

“The selection criteria for bidders for greenfield international projects are stiff. Reliance Infrastructure will have to go for global tie-ups; may be it needs to look for a US or an European partner to pass the muster for these bids,” said an aviation analyst with a consulting major, who did not want to be identified.

Reliance Infrastructure, which is developing brownfield airport projects, made abortive attempts to bag modernisation contracts for Delhi and Mumbai. It is developing airports at Nanded, Yavatmal, Baramati, Latur and Osmanabad in Maharashtra for an investment of Rs500 crore in next three years. The company may rope in private equity investors for raising funds for these projects.

In addition, Reliance Infrastructure will bid for other non-metro airports which will come up in Gujarat and Andhra Pradesh, said Ms Basarkod. New York-based consultant Louis Berger Group and Knight Frank are guiding Reliance to chalk out the road map for bids for non-metro airports. The company is likely to finalise its plan by September. The company plans to recover the operational cost of these five regional airports in the next year.

Reliance Infrastructure is planning to develop Baramati as a general aviation hub for corporate jets and ATRs for an investment of Rs100 crore in the next three years. It also plans to set up a maintenance, repair and overhaul facility at Baramati for which it started talks with Air Works. Other plans for Baramati include setting up a four-star hotel. Reliance Infrastructure is keen to set up a facility for recycling aero parts at Yavatmal airport.