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PM to lay foundation stone for Navi Mumbai international airport

IANS  |  Mumbai 

will perform the 'bhoomi pooja' (ground-breaking ceremony) for the upcoming Rs 16,000 crore International Airport (NMIA) on February 18, it was announced on Monday.

The new airport, in the adjoining Raigad district, will be the second international aviation hub for Mumbai, presently served by the Chhatrapati Shivaji International Airport, which has almost achieved saturation point.

The NMIA will be constructed by the Power & Infrastructure Ltd (GVKPIL) as per a Concession Agreement signed on January 8, with the (CIDCO), the nodal authority of to oversee the project implementation.

The agreement has created a special purpose vehicle - International Airport Pvt. Ltd (NMIAL), in which the GVKPIL, through its subsidiary, International Pvt Ltd, holds 74 percent equity, while the rest is held by CIDCO.

The initial concession period is 30 years, from the appointed date, which is extendable by another 10 years, for the project in which GVKPIL was declared the successful bidder in February 2017.

The NMIAL, a greenfield airport, will be constructed in the PPP mode on 1,160 hectares on the mainland in Navi Mumbai, across the harbour, with the advantage of the upcoming Trans Harbour Link, a Special Economic Zone and other major infrastructure developments coming up.

CIDCO, which holds 26 per cent stake, will foot the pre-development expenses which will be later recovered from GVK, besides getting a 12.6 per cent share in the annual revenue from the mega-project.

The GVK, which currently manages the International Airport Ltd, had submitted the highest revenue sharing model of 12.6 per cent per annum over its sole closest competitor (which manages the New Delhi International Airport) which had quoted a figure of 10.44 per cent.

With two major airports under its belt, the plans to soar and develop its airports business globally.

Besides Modi, Governor C.V. Rao, Devendra Fadnavis, P. A. Gajapathi Raju, Nitin Gadkari, top and CIDCO officials will be present for the event next Sunday.

--IANS

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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Mon, February 12 2018. 18:04 IST
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