GVK, GMR submit bids for Navi Mumbai airport

Tata Realty & Hiranandani Developers refrain from participation

GVK-led Mumbai International Airport Limited  and GMR Group, which run the country's busiest airports, today submitted financial bids for the Rs 16,000 crore Navi Mumbai international airport. Today was the last day for the bid submission after two extensions granted the City and Industrial and Development Corporation (CIDCO).

Bids were received on Monday afternoon, CIDCO officials said. MIAL has the right of first refusal and will be allowed to match the bid if it is 10% lower than competition.

The much delayed project failed to attract any bidder on earlier two occasions and CIDCO was forced to make changes in project conditions.

The Rs 16,000-crore airport project will be carried out through public private partnership. Project implementing authority CIDCO will bear the cost of pre- development works and the amount will be treated as a loan to the project developer.

One of the changes in concession agreement is extension to the repayment period of soft loan from 11 years to 15 years and another one is to cap the soft loan to around Rs 3,500 crore and not the actual cost.

According to original condition, out of the total amount of Rs 3,420 crore spent on pre-development works, Rs 430 crore will be treated as CIDCO’s equity contribution and the remaining as soft loan to be repaid in five equal instalments from the 11th year.