Navi Mumbai airport: CIDCO mulls extension of RFQ deadline up to Dec end

Civil Aviation Ministry's nod for single or dual till model is still awaited

State-run City and Industrial Development Corporation (Cidco) is expected to further extend the deadline for the submission of request for qualification (RFQ) for the Navi Mumbai international airport from December 10 to December-end. This is necessary as the Union civil aviation ministry is yet to give its clearance on single or dual till approach and also on share-holding pattern. Cidco is likely to take a decision in this regard in day or two.

Besides, Cidco is currently engaged in the acquisition of 456 hectares of private land. Cidco, which had issued RFQ on February 5, had already extended the deadline many times - first to July 30, then to September 2, October 31 and December 10.

Cidco officials are to brief the Chief Minister Devendra Fadnavis on the present status of the bidding process, land acquisition and extension of deadline for RFQ submission.

A Cidco official told Business Standard: “RFQ deadline is likely to be extended up to December end as the civil aviation ministry's consent on single or dual till approach is still awaited.” He added that Fadnavis has already spoken to civil aviation minister Ashok Gajapathi Raju for any early approval.

Cidco is the nodal agency for the Navi Mumbai airport project, which needs 2,268 hectares, out of which 1,160 hectares will be used for aeronautical purposes.

Under the ‘single till’ principle, all airport-related assets and costs are taken into account in determining allowed tariff rates or return or a general price cap, after considering all revenues from non-aeronautical services. On the other hand, in case of ‘dual till’, the revenues, costs and assets of an airport are allocated between two heads - aeronautical and non-aeronautical. In a pure dual till, the ‘regulatory till’ is made up of revenues, costs and assets (and thus the costs of financing those assets) that are solely associated with aeronautical activities plus a share of the common costs and assets that support both aeronautical and non-aeronautical activities.

The Cidco official said the Corporation had already amended the RFQ whereby the equity participation by a scheduled airline, cargo airline or its associates has increased to 26 per cent from 10 per cent in the special purpose vehicle (SPV) that will execute the project. According to the revised document, 74 per cent will be held by the private consortium, while Cidco will retain the remaining 26 per cent stake.

Further, the term of concession will be for a minimum period of 30 years and the premium will constitute the sole criteria for evaluation of bids. Besides, the applicant should have an experience of an eligible project operated for a period of three consecutive years in the past 10 calendar years, instead of the earlier provision of five years. Further, the bidder will have deposited a bid security of Rs 50 crore instead of one per cent of the estimated project cost refundable no later than 120 days from the bid due date.

TATA Realty and Infrastructure, Zurich Airport, Ferrovial, Mumbai International Airport, SREI Infrastructure, Samsung C&T, IL&FS, GMR Group, Shakat Aviation, Walnut Aviation, Essel Infrastructure and Vinci Concessions India had shown interest in the project development.