The Group of Ministers, set up to give a direction to the process of restructuring of Delhi and Mumbai airports, would meet in New Delhi on Thursday and is likely to take a final decision on the appointment of a financial advisor for the purpose, government sources said.

The GoM, which would be meeting for the first time after being set up a few weeks ago, comprises Finance Minister Jaswant Singh, Divestment Minister Arun Shourie, Law Minister Arun Jaitley and Civil Aviation Minister Rajiv Pratap Rudy.

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The sources said five major financial firms including Tata Economic Services, ABN-Amro Financial Services, KPMG and Price Waterhouse-Coopers have been shortlisted for the purpose. The selected consultant would monitor the projects at both airports and approve the designs and plans.

The GoM would also try to finalise matters relating to restructuring and modernisation of the two airports for further discussions by the Cabinet-appointed Empowered Committee of Ministers.

The final recommendations of this committee set up to study the overall financial parameters for the privatisation of the two airports and to ensure that there is no delay in modernising them, would be sent to the Union Cabinet for approval, the sources said.

The Cabinet had on September 11 approved the restructuring of the two metro airports through the joint venture route with a maximum of 74 per cent private equity.

The Empowered Committee would lay down the parameters for evaluation of financial bids and the tariff regime, the requirements of a world-class airport, besides looking into passenger-related issues as well as the designs.

The time-frame for handing over the project to the selected JV partners would be eight months after their selection and the requirement for the financial bids would be completed within four months, the sources said.

The Airports Authority of India Act was amended by the Parliament last session to meet the needs for developing world-class airports in the country with private participation.

Stating that the two airports have been evaluated at over an estimated Rs 5,000 crore (Rs 50 billion), the sources noted that the Act had been amended, not only to clearly define a private airport, but also to allow establishment of such airports.

Provisions were also made in the Act to lease airport premises to private operators with prior approval of the government.

These provisions, the sources said, would enable the airport privatisation process to proceed without a hitch.

As per the Cabinet decision, the 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.