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  Business   Companies  19 Oct 2017  GVK wins bid to develop Navi Mumbai airport; CIDCO to soon issue LoI

GVK wins bid to develop Navi Mumbai airport; CIDCO to soon issue LoI

THE ASIAN AGE
Published : Oct 19, 2017, 12:36 pm IST
Updated : Oct 19, 2017, 12:45 pm IST

Maharashtra chief secretary Sumit Malik-led panel proposes GVK's bid to state Cabinet for final nod.

The site where Navi Mumbai International Airport will be built. (Photo: AFP)
 The site where Navi Mumbai International Airport will be built. (Photo: AFP)

Mumbai: Hyderabad-based GVK has won bids to develop the much awaited Navi Mumbai International Airport that falls in the jurisdiction of City and Industrial Development Corporation, CIDCO. CIDCO will bear the pre-development cost of the project, according to a report in The Financial Express.

GVK that has built Mumbai's international airport has businesses in such diverse sectors as energy, resources and hospitality among others. The Navi Mumbai International Airport project has been monitored by a chief secretary led panel Project Monitoring and Implementation Committee formed by the Maharashtra government.

The Rs 16,000 crore project will be executed by Mumbai International Airport Limited (MIAL), which won the contract in February 2017.

MIAL is a Joint Venture between the Airports Authority of India (AAI) and the GVK Industries Ltd led consortium.

City and Industrial Development Corporation (CIDCO) is the nodal government agency for the project which will be built through public–private partnership (PPP) on a 'design, build, finance, operate and transfer' (DBFOT) basis.

MIAL will hold 74 per cent equity in the airport with the AAI and CIDCO each holding 13 per cent.

Source: Wikipedia

The PMIC headed by Sumit Malik has also recommended the GVK led Mumbai International Airport Limited's bid to the state Cabinet for final approval. Once the GVK gets Cabinet nod, CIDCO will issue Letter of Intent to developer company MIAL.

"The award of the LoI will be an important step in taking the project forward, which has been dogged by inordinate delays since its conception about two decades ago," FE report said.

MIAL submitted its bid in February with an offer of 12.6 per cent revenue to CIDCO, state government's extended arm that was formed as town planning authority for Navi Mumbai before local civic body came into being. GMR was the only other bidder.

Bhushan Gagrani, vice-chairman and managing director, CIDCO, told FE the pre-development work had already begun at the airport site. “We will be spending Rs 2,000 crore in this financial year itself on pre-development works," he added.

Tags: navi mumbai international airport, gvk, cidco, sahar airport
Location: India, Maharashtra, Mumbai (Bombay)