Prove financial capability: Cidco puts GVK in dock over Navi Mumbai airport

Cidco's queries to GVK group on its financial health comes as the latter has been unable to secure funds from banks and start work on the project.

Maharashtra government body City and Industrial Development Corporation (Cidco), which owns 26 per cent in the Rs 17,000-crore Navi Mumbai International Airport (NMIAL) project, has asked the GVK group to prove it has the financial capability to complete the project after its group companies were downgraded by a series of rating firms.  

At the same time, Bidvest of South Africa, one of the investors in Mumbai International Airport (MIAL), has moved the arbitration panel seeking to prevent GVK from issuing any shares to third-party investors unless it gets Cidco’s clearance in this regard.

Cidco had earlier written to GVK, saying