Business Standard
Friday, Feb 17, 2012
drived banner
drived banner
  Advanced Search
RSS
Content Guide
Follow us on  
||||Economy & Policy||||| 
 Section Home | News Now | Today's Paper | Features & Analysis | Politics & Public Affairs | Q&A | Columnists | BS Says
Home > Economy & Policy Live Markets | Commodities
 

Navi Mumbai airport delay grounds key projects
Sanjay Jog / Mumbai Sep 09, 2010, 00:26 IST

The signboard at Kopra-Panvel, about 35 km from the existing Mumbai airport at Santa Cruz, was put up with much fanfare in 2004 after the site was finalised for the proposed Navi Mumbai International Airport. Six years later, time seems to have stood still at the site — the land remains as barren, with not a soul in sight. The only visible change is the fading blue colour of the signboard, as the cloud of uncertainty thickens over Mumbai’s second airport project, which was to have come up over 1,600 hectares at a cost of around Rs 10,000 crore.

Apart from the airport itself, what’s at stake is the development of several infrastructure projects in its vicinity at an investment of around Rs 40,000 crore. The projects were lined up by the Maharashtra government, the Mumbai Metropolitan Region Development Authority and the City and Industrial Development Corporation (Cidco) in and around Navi Mumbai.

One Cidco official said the uncertainty has put a serious question mark over the viability of these projects. They include a special economic zone (estimated cost: Rs 6,500 crore), a 22.5-km Mumbai Trans Harbour Link (Rs 7,700 crore), Navi Mumbai metro project (Rs 3,500 crore), mass transit scheme and development schemes for Navi Mumbai (Rs 4,000 crore), real estate projects (Rs 15,000 crore), and a golf course (Rs 100 crore).
 
Projects under threat  Proposed
investment
(Rs  crore)
Real estate 15,000
Dronagiri SEZ 6,500
Trans Harbour Link 7,700
Transit & development 4,000
Navi Mumbai metro  3,500
Golf course 100
Total 36,800

The Cidco official said these infrastructure projects and investments were feasible only if the airport actually comes up. In addition, the airport would open up the state’s vast hinterland — rich in agriculture, floriculture, hi-tech industries — to the world market.

But, with the airport project currently mired in environmental delays, the infrastructure projects now face an uncertain fate. For example, development of the Dronagiri SEZ, in which Cidco has 26 per cent equity, is making glacial progress; only a compound wall has been erected. “Had the airport received clearance on time, the flow of investments would have gathered momentum,” the Cidco official said.

So, too, with the Trans-Harbour Link, which has a transformational potential well beyond just a transport project. Once constructed, it will substantially resolve Mumbai’s infrastructural bottlenecks by freeing up large tracts of land for affordable housing in a city already starved for space. It will also help decongest the city. Officials said the location of the airport was considered on several parameters, prominent among these being the fact that Navi Mumbai is expected to absorb future growth in population, business and commercial activity in the region.

Sunil Mantri, president of the Maharashtra Chamber of Housing Industry, said several big-ticket residential and office complexes, malls, among others, were planned in the vicinity of the new airport. “The uncertainty over the new airport is a huge setback. We expect clarity on this issue, as the airport’s development is key to all these projects,” Mantri added. He has reasons to be worried, as real estate prices in Navi Mumbai have shot up by nearly 400 per cent in the last six years in anticipation of the airport and its attendant benefits, but could crash if the airport project is scrapped.

The bone of contention between the Union environment and forests ministry and the Maharashtra government is that the new airport at the proposed site would involve destruction of 400 acres of mangrove, diversion of the rivers Gadhi and Ulwe, and levelling of a 91-metre hillock, which the environment ministry says acts as a natural buffer for the coastline.

But, Cidco says if the site is shifted to Uran — one of the possible alternative sites being considered — it would lead to the levelling of two big hills in the Karnala range. It would also mean relocation of 20,000 villagers, which would be more controversial.

While the respective ministers are expected to meet shortly to resolve the issue at the behest of the Prime Minister, the consensus is that Mumbai badly needs another airport. The existing airport barely manages 18 million passengers a year and its runways handle over 30 flight movements an hour — the optimum capacity being 40 flight movements, which the airport is likely to touch very shortly. The Navi Mumbai airport had proposed to start operations with 10 million passengers a year capacity in 2012.

New Ipad Application :Business Standard's all new IPad App
Click here to download for free
Arrow Other Stories     
- Wall Street opens flat as data offsets Moody's warning
- Thomas Cook India Q4 net jumps three times
- Govt plans to make 30% sourcing from MSEs mandatory
- Explain ways to cover govt loss on 3G roaming: TDSAT to telcos
- Magma Fincorp plans to start gold finance biz in H1 of FY13
  Read Business news in 
- Now property search gets more exciting than ever before!
- High Growth Business Opportunities in Africa - Register to explore
- Medium-sized businesses are the engines of a smarter planet.
- We live for our family. have you secured them?
- Office 365 for professionals and small businesses.
- Earn fuel worth Rs.2400 with Citi
- India's No. 1 Property Site. Click here to know more..
- Diseases earlier, Saving Costs, Extending Lives. Know More..
- Get 5% cashback on telephone bills with Citi
- Enjoy the journey as much as the destination. click to know more..
- Exim Bank Conclave on India - Africa Project Partnership. Know more..
- Be part of it The World's Largest Aircraft.
- Creating Wealth made simple the SIP way. Know more..
- Only Developer to give a guarantee on time space & rate.
- Buy Your Property with Our Triple Guarantee in India.
- Improve Patient Care & Experience. Click here to know more
- Win a Business Class Ticket to Europe..Know more..
-  Introduce a New Automotive Luxury Car.. know more
- Health is Wealth..... Insurance + Savings... Know More...
Sorry, comments to this story are closed
Latest Messages
SmartInvestor+ E-zine
  Pay Rs.747/- for 3 years and
  get a branded watch FREE

  Subscribe Now
Most Popular
Read
E-Mailed
Commented
   
- Marico: Stepping into unchartered territory
- Asian stocks fall as Greek bailout delay dampens mood
- Sonalde Desai: Sons of the soil
- Bhupesh Bhandari: A spectrum of disagreement
- A crown of thorns awaits winners of BMC polls
 
 More  
New Ipad Application
 Business Standard's all new IPad  App
 Click here to download for free
  BS Specials  
    Full coverage of elections in Uttar Pradesh, Punjab, Uttarakhand, Manipur and Goa
  Hot Searches  
 
IRFC bond |  Antrix-Devas |  Rafale fighter |  Junglee |  IPL 5 |  Dhanlaxmi Bank |  Thomas Cook |  TCS |  Sarfaesi Act |  Vodafone |  Aakash tablet |  Sodexo |  Rupee |  Samsung Galaxy Note |  Kingfisher Airlines |  Silver |  Provident Fund |  income tax refund |  Anna Hazare |  iPhone |  Reliance Industries |  SEBI |  BSNL |  BSE |  NSE |  Mukesh Ambani |  Anil Ambani |  Infosys |  Pranab Mukherjee |  Sonia Gandhi |  Rahul Gandhi |  New Pension Scheme |  Reliance |  RBI |  GDP |  Gold |  Ratan Tata |  ICICI |  B-School |  Sensex |  Tax calculator |  Home Loan |  Personal Finance |  inflation |  oil prices |  Barack Obama |   
 
  Member Area Write to the Editor RSS Archives Advanced Search
  Subscribe to BS print product BS e-paper Newsletter Portfolio Tracker
  BS Products BS Hindi BS Motoring BS Books
FOR HOT PRODUCTS
BS Bazaar.com
Home | Markets & Investing | Companies & Industry | Banking & Finance | Economy & Policy | Opinion
Life & Leisure | Management & Marketing | Tech World
About Us | Partner With Us | Code of Conduct | Careers | Advertise with us| Terms & Conditions | Disclaimer | Contact Us