Ernst & Young is not participating in the fresh round of bidding for financial consultants to the Rs 10,000 crore (Rs 100 billion) Mumbai and Delhi privatisation project. It had emerged the lowest bidder in an earlier round of bids.

The five consultants that submitted fresh bids were ABN Amro, KPMG, Tata Economic Consultancy Services, ANZ Grindlays and Mallik Associates, sources said. The candidates are yet to be shortlisted.

According to the new tender, the financial consultant will be selected on the basis of its technical proficiency. The earlier tender had stipulated that the lowest bidder would bag the project.

Of the three firms shorlisted earlier, Ernst & Young had emerged the lowest bidder with a quote of Rs 2.39 crore (Rs 23.9 million). ABN Amro followed with a bid of Rs 4.49 crore (Rs 45 million), while KPMG quoted Rs 6.44 crore (Rs 64.4 million).

The new tender conditions do not require the submission of financial bids. The fee for the financial consultant will be decided by the ministry after it specifies the quantum of work. Sources said the fee would be in the range of Rs 2-5 crore (Rs 20-50 million).

The group of ministers looking into the privatisation of the two airports had objected to the fact that the selection of the consultant was being based solely on financial bids.

The group had referred the selection process to the law ministry, which had suggested fresh bidding.