Siemens in talks with RIL, L&T to bid for Navi Mumbai airport

Siemens in talks with RIL, L&T to bid for Navi Mumbai airport

Mumbai: Siemens Ltd, the Indian arm of German electrical and engineering company Siemens AG in India, is in talks with Reliance Industries Ltd (RIL) and Larsen & Toubro Ltd (L&T) for a possible tie-up to bid for the proposed Navi Mumbai International Airport.

The company’s subsidiary, Siemens Project Ventures, already holds a 40% share in Bangalore International Airport Ltd with the remaining being held by the Karnataka State Investment and Industrial Development Corp., the Airports Authority of India (13% each), L&T, and Switzerland’s Zurich Airport (17% each).

“Among the possible potential partners for bidding Navi Mumbai airport, Reliance Industries and Larsen & Toubro are important ones," said a senior Siemens executive, who did not wish to be identified.

An RIL spokesperson declined to comment on the issue. RIL is currently in the process of developing a special economic zone in Navi Mumbai, near the airport.

“We are keen to participate in the Navi Mumbai (airport) project. But we cannot divulge the details of consortium partners at this point of time," said a senior L&T executive, who asked not to be named.

L&T has recently won the mandate to build the airport terminal for the Mumbai airport from Mumbai International Airport Ltd (Mial). “We are interested in any transport-related construction project," the executive added.

The Navi Mumbai airport project has been conceived to support growing air and passenger traffic. The international airport being developed in Mumbai will be fully saturated by 2013.

The Hyderabad-based GVK group, which currently operates Mial, holds the first right of refusal for the development of the proposed airport at Navi Mumbai. This means that if GVK’s bid falls short of the highest bid by up to 10%, it will have the right to revise and match the offer to operate Navi Mumbai airport.

“We are certainly interested in the Navi Mumbai project. We will soon finalize our international partner for bidding this project," said a senior GVK executive, who did not wish to be identified. GVK has tied up with Airport Company South Africa to operate Mumbai International Airport.