'Navi Mumbai Airport's phase I construction may cost 50% more'

The construction cost of phase I of Navi Mumbai Airport is expected to go up by nearly 50 per cent to Rs 13,562 crore from earlier projected cost of Rs 9,600 crore.

In 2013, then Maharashtra chief minister Prithviraj Chavan had said that phase I of the Navi Mumbai International Airport was expected to be completed at a projected cost of Rs 9,600 crore.

Navi Mumbai International Airport "Phase I is expected to be implemented at a cost of Rs 13,562 crore, and will have a capacity of one crore passengers per annum," ratings agency Crisil said in a report.

GVK group spokesperson was not available for a comment when contacted.

The second airport in the Mumbai Metropolitan Region is planned for a minimum capacity of 60 million passengers per annum (MPPA), with the first phase capacity pegged at 10 million passengers per annum.

GVK, which is developing the Navi Mumbai Airport, had announced last week it has achieved financial closure for the construction of the first phase of the airport.

The infrastructure major had bagged the financial bid to build and operate the second international airport in the Mumbai Metropolitan Region Navi Mumbai at an investment of Rs 16,000 crores this year, beating rival GMR Group.

GVK Power and Infrastructure (GVKPIL), a part of the GVK group, had in January this year signed a concession agreement with Cidco to create a special purpose vehicle, NMIAL, for developing the new airport.

The initial concession period is 30 years from the appointed date, which is extendable for a further 10 years.

GVK through its subsidiary, Mumbai International Airport (MIAL), holds 74 per cent stake in NMIAL, while Cidco, the town planning authority, holds the balance 26 per cent.