Mumbai's new airport to be built by local hub operator GVK
- Author: Zachary Reyes Feb 14, 2017,
Feb 14, 2017, 10:01
Mumbai International Airport Ltd (MIAL) led by GVK Power & Infrastructure Ltd quoted the highest revenue share of 12.60%, thereby becoming the frontrunner in bagging the Rs 16,000 crore worth Navi Mumbai International Airport (NMIA) project.
GVK emerged the bid victor leaving behind GMR Airports Ltd, which operates Delhi International Airport (P) Ltd (DIAL), a joint venture formed as a consortium between GMR Group (54 percent), Airports Authority of India (26 percent), and Fraport AG and Eraman Malaysia (10 percent each). While GVK had submitted its bid that day, others backed out, forcing CIDCO to extend the opening of the bids twice.
GVK and GMR were the only bidders in the race for the right to build the Rs16,000 crore Navi Mumbai airport project that will reduce the burden on Mumbai's congested airport.
"The evaluation committee will prepare a report on the qualified bids which will be sent to the state cabinet for its approval and final decision about selection of the bidder", CIDCO said in a statement.
CIDCO expects the first phase of the airport to be operational by 2019; this will handle 10 million passengers annually.
GVK has been finalised by Maharashtra's CIDCO to construct the upcoming Rs 16,000 crore Navi Mumbai International Airport, a greenfield project situated on the mainland, an official said here on Monday. The contract award comes decades after the state government first mooted the project.
"It is a matter of huge pride for MIAL and GVK to have won the bid for building, developing and operating the Greenfield Navi Mumbai International Airport project".
The new airport is expected to handle 60 million passengers in 2030 when it is expected operate at full capacity, he said. The new airport, first proposed in 1997 and approved by the government in 2007, has been delayed by problems related to land acquisition and securing environmental clearances. CIDCO had failed to attract any bidders at the earlier two occasions and was forced to alter the project conditions, to make it attractive for developers.
GVK now operates India's first brownfield and greenfield airports as Chhatrapati Shivaji International Airport in Mumbai and Kempegowda International Airport in Bengaluru under the PPP model.
Navi Mumbai is Asia's largest public-private partnership airport project.