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The GVK led Mumbai International Airport Ltd., (MIAL) was handed over the Letter of Award (LOA) from CIDCO, the nodal agency of the Government of Maharashtra for the Navi Mumbai International Airport PPP.
As we reported in February 2017, MIAL was declared the winning bidder for the greenfield airport that will be built in a Public Private Partnership (PPP) mode with CIDCO. MIAL will hold a 74 per cent stake while the remaining 26 per cent will be with CIDCO.
In mid October, we informed that CIDCO received the financial proposal from GVK for the project.
The Navi Mumbai airport project will be developed on 1,160 hectares. It is expected to have capacity of 10 million passengers per annum in its first phase and 60 million upon completion. The new airport is intended to relieve capacity pressure on the Mumbai Metropolitan Region, where air traffic demand is projected to exceed 40 million annual passengers by 2017 and 100 million passengers by 2030.
The airport will be developed on design, build, finance, operate and transfer (DBFOT) basis, with a total investment of INR145 billion (US$2,28 billion).
Construction works for the first stage will start by December 2019. The airport is unlikely to commence operations before March 2024.
Dr GVK Reddy, Executive Chairman MIAL and founder Chairman of GVK said:
“We are delighted that GVK has been awarded this exciting project. In collaboration with CIDCO, the Government of Maharashtra and the Government of India, we are confident of providing yet another landmark airport for the city of Mumbai. The invaluable experience that our team gained whilst developing the Mumbai airport will be very useful and will enable us to deliver yet another world class facility. GVK is committed to develop its airport business globally and the award of the Navi Mumbai project to us is another major step in this direction.”