Navi Mumbai airport: Agreement signed at Mantralaya in Maha CM’s presence
Pact signed between GVKPIL, CIDCO through a special purpose vehicle [a subsidiary company] NMIALmumbai Updated: Jan 08, 2018 22:26 IST
Inching closer towards commencement of the Navi Mumbai international airport, GVK Power & Infrastructure Ltd (GVKPIL), which won the contract, signed a concession agreement with City and Industrial Development Company (CIDCO), on Monday, at Mantralaya. Sources said construction of second airport is likely to begin in the six months.
The agreement was signed through a special purpose vehicle [a subsidiary company] Navi Mumbai International Airport Pvt Ltd (NMIAL).
“GVKPIL through its subsidiary MIAL holds 74% shares of NMIAL, while CIDCO has the rest [26%]. The initial concession period is 30 years from the appointed date, which is extendable for another 10 years. This means that CIDCO has given us the authority to go ahead and build the airport,” said a spokesperson from GVK.
The agreement was signed between GVK Reddy, executive chairperson of Mumbai International Airprot Pvt Ltd (MIAL), and Bhushan Gagrani, vice-chairperson and managing director, CIDCO, at Mantralaya. Chief minister Devendra Fadnavis was present while signing the agreement.
Reddy said, “With the continued support of the Central government, Maharashtra government, CIDCO and all our stakeholders, we are confident of creating and delivering the much-needed second airport for the twin cities of Mumbai and Navi Mumbai.”
MIAL won the bidding process for the Navi Mumbai airport in February 2016. However, it received the letter of award (LoA) from CIDCO on October 25, 2017. The airport is said to become operational by 2019. Though the airport, with an area of 2,320 hectares, has been is the pipeline for several years, various permission and property dispute delayed the project.