Ernst & Young has emerged the lowest bidder, with a quote of Rs 2.39 crore (Rs 23.9 million), in the race for a financial consultant to the privatisation of the Delhi and Mumbai airports.

The Divestment Development: Complete Coverage

The group of ministers on the airport sale has, however, referred the selection process to the law ministry because it wants technical expertise, and not the lowest bid, to be the criterion for selection of the consultant.

However, the tender for financial consultants states that the lowest bidder will be selected. Officials said it would, therefore, be illegal to change the selection criterion now. If the law ministry could not find a way out, the tender conditions would be changed and fresh tenders would be invited, they said.

ABN Amro emerged the second lowest bidder with a quote of Rs 4.49 crore (Rs 44.9 million), while KPMG quoted Rs 6.44 crore (Rs 64.4 million). The group of ministers on Wednesday saw the presentations made by the three shortlisted firms, but deferred a decision.

The presentations were organised to assess the technical expertise of the firms and their experience in airport privatisation globally. The officials said the panel members found ABN Amro's presentation to be technically sound.

The group of ministers, in its meeting on November 14, had suggested that the financial consultant should be selected on the basis of technical parameters.

The group has had three meetings on the issue of selection of the financial consultant. The first meeting was held on November 9. With the decision being deferred, the May 30, 2004, deadline for the privatisation process may be pushed back.