MIAL can contribute $10b or 4% of Maha GSDP by FY23: Report

GVK-managed Mumbai International Airport (MIAL) can contribute 4.02 per cent of Maharashtra State GDP by FY23, or USD 10 billion in both direct and indirect revenue, a leading economic think-tank has said.
"MIAL is predicted to generate as high as USD 10 billion from total (direct, indirect & induced) value-added revenue of airport operations by FY23, or about 4.02 per cent of Maharashtra's GSDP," National Council of Applied Economic Research (NCAER) said in a report.
The report pegged the total revenue of MIAL to rise to Rs 4,140 crore by FY23, when its aeronautical revenue is slated to touch Rs 1,718 crore and non-aero to Rs 1620 crore.

In FY15, its revenue is likely to be Rs 2,365 crore while the aero revenue will be Rs 1,316 crore with the non- aero income slated to touch Rs 821.6 crore.
In FY10, MIAL's total revenue stood at Rs 1,314 crore, aero revenue at Rs 424.2 crore, while the non-aero income was a little over Rs 714 crore, according to the report.
Maharashtra is expected to continue to reap windfall gains from the airport, which has already helped it to top in tourist arrivals at 5.12 million in 2012, which was close to a quarter of the travellers who came to the country, it said.

However, along with a rise in income, expenditure too is expanding over the years - from Rs 8,21 crore FY09 to Rs 1,248.3 crore in FY13.

However, the aeronautical revenue per passenger declined from Rs 160 in FY09 to Rs 138 in FY12. But the trend reversed in FY13, when it rose around 25 per cent over the previous fiscal year due to an increase in user fee charges.
On the other hand, non-aeronautical revenue per passenger shows a continuous rise since FY11 due to better revenue collection from retail licences.
Since 2006, the GVK Group has spent over USD 2 billion to build a new terminal and directly employed 20,000 people during the construction phase.

Furthermore, the direct and indirect impact of GVK Skycity activities, that aim to develop a world-class hub for passengers and for the local population, is expected to amplify. In the coming years, MIAL proposes to invest over USD 3 billion for the Skycity project and create over 27,000 jobs.