Reliance Infra joins race for Prague airport sell-off

New Delhi, May 5 : Reliance Infrastructure has joined GMR and Essar in expressing interest in the modernisation of the Prague Airport. The Prague Airport Authority (PAA), while opting for airport privatisation, is yet to decide whether it will sell off its 100 per cent stake in the airport (valued at $5 billion) or go in for a strategic joint venture for the airport’s modernisation. Meanwhile, Reliance Infrastructure has expressed interest in both the options before the PAA.

If the PAA decide to sell off their stake in the airport, industry sources said Reliance Infrastructure was expected to bid for an acquisition worth $5 billion, subject to the valuation the company agrees on. Modernisation of the airport would entail expansion of terminals and ramping up airstrips.

While the PAA is yet to finalise the mode of privatisation, the airports bidding process is expected to start in June-July. Sources said Reliance will bid through Reliance Airport Developers Pvt Ltd — a 100 per cent subsidiary of the company. Earlier, Reliance Infrastructure had successfully bid for airport privatisation projects at Udaipur and Amritsar under the same subsidiary.

Prague airport has a strategic advantage due to its central location in eastern Europe. It has witnessed an increase in traffic over the past few years — passenger traffic at Prague increased 7.2 per cent in the first three months of 2008 over the same period in 2007. Sources said the PAA had been watching India’s airport privatisation model and sought interest from Indian companies for the project.

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