Videocon to bid for Navi Mumbai airport

Videocon Group announces it would bid for the greenfield airport at Navi Mumbai, while committing Rs 3,000 cr as the initial investment in the aviation sector.

Consumer electronics major Videocon Group on Wednesday announced it would bid for the greenfield airport at Navi Mumbai, while committing Rs 3,000 crore as the initial investment in the aviation sector.

"We will be bidding for the Navi Mumbai airport and we have also shortlisted our foreign collaborators for the same," Videocon Chairman Venugopal N Dhoot told reporters on the sidelines of an ASSOCHAM function in New Delhi.

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The new company would be named Videocon Aviation Limited and the parent firm would make an investment of Rs 100 crore in the Special Purpose Vehicle and rest of the funds would be generated from FIIs, public and foreign collaborators, he said.

"Initially, we are offering 24 per cent stake to our foreign collaborators which can go up to 49 per cent," Dhoot said without naming the foreign collaborator but revealed that it was an Europe-based airport operator.

Videocon had made a bid for the Delhi Airport as well, but it was rejected by the government as there was no airport operator in the consortium.

Construction of a second airport in Navi Mumbai was cleared by the Union Cabinet on May 31 this year. The new airport would be developed as a greenfield project through public-private partnership like the ones being developed in Hyderabad and Bangalore.