GVK inks pact with Cidco for ₹16,000-cr Navi Mumbai airport project

V Rishi Kumar Hyderabad | Updated on January 08, 2018 Published on January 08, 2018

GVK Reddy, Executive Chairman, MIAL

GVK Power & Infrastructure Ltd has signed a concession agreement for the mega ₹16,000-crore Navi Mumbai International Airport project.

The agreement has been signed through a special purpose vehicle, Navi Mumbai International Airport Pvt Ltd with Cidco, the nodal authority of the Maharashtra government for the implementation of the project.

Through its subsidiary, Mumbai International Airport Pvt Ltd, GVKPIL holds 74 per cent equity shares in the proposed Navi Mumbai Airport Ltd with Cidco holding the balance 26 per cent.

The initial concession period is 30 years from the appointed date and extendable for 10 years.

The agreement was inked in the presence of Maharashtra Chief Minister Devendra Fadnavis; Executive Chairman MIAL, GVK Reddy; and Chairman and Managing Director of Cidco Bhushan Gagrani in Mumbai, according to a regulatory filing with the BSE.

GVK Reddy said: “GVK has got the opportunity to yet again display its technical and managerial prowess in the airports sector after having created the award winning Mumbai airport, for developing and maintaining Navi Mumbai International Airport. With the support of Central and Maharashtra governments and Cidco, we are confident of delivering the much-needed second airport for the twin cities of Mumbai and Navi Mumbai.”

Divest interest

GVK subsidiary MIAL was declared successful bidder for Navi Mumbai International Airport in February 2017 and received the Letter of Award from Cidco on October 25, 2017.

The Hyderabad-based diversified infrastructure company, which also had the Bangalore International Airport Ltd, under its fold, divested its interest in the project to Prem Watsa-headed Fairfax Holding.

The divestment was done to pare GVK’s debt and to concentrate on the development of the Navi Mumbai project.

The much-delayed ₹16,000 crore project is being looked towards to facilitate the projected growth of the aviation sector.

While some of the works related to the project are already on and being handled by infrastructure companies, rehabilitation of people affected by land acquisition, levelling of the area to pave way for construction works and diversion of river pathway are in progress.

During a recent interaction, GVK Reddy told BusinessLine that, “We are confident of sorting out all these issues and gearing up to develop a world class airport. This will have a number of advantages when compared to the Mumbai airport project developed by us.”

Shares hit upper-circuit

On Monday, GVK Power shares closed at ₹21.10, hitting upper circuit of 5 per cent on the BSE.

Published on January 08, 2018
This article is closed for comments.
Please Email the Editor