The GVK group-led Mumbai International Airport (P) Ltd (MIAL) was on Wednesday handed over the Letter of Award for developing Navi Mumbai International Airport by CIDCO, the nodal agency of the Maharashtra Government for awarding the contract.

The development will enable the Hyderabad-based infrastructure company, GVK Power & Infrastructure Ltd, to commence work on the ₹16,000-crore, public, private partnership mode project (PPP), which has been delayed for several years due to various issues relating to land acquisition and environmental clearance.

Earlier in February, MIAL was declared the winning bidder for the greenfield airport to be developed on 1,160 hectares in a PPP mode with CIDCO, where MIAL will hold a 74 per cent stake and the remaining 26 per cent will be with CIDCO.

GVK Reddy, Executive Chairman MIAL and founder Chairman of GVK, in a statement said, “We are excited that GVK has been awarded this project. In collaboration with CIDCO, the Maharashtra Government and the Centre, we are confident of providing yet another landmark airport for the city of Mumbai.”

GVK MIAL is a public private partnership joint venture between a GVK-led consortium and the Airports Authority of India. It was awarded the mandate for operating and modernising Chhatrapati Shivaji International Airport, Mumbai. The new integrated Terminal 2 at CSIA enhanced the airport’s capacity to service over 50 million passengers and one million tonnes of cargo annually.

During a recent interaction, Reddy told BusinessLine that the project would be taken up expeditiously.

GVK shares closed at ₹15.56, up 5 per cent, on the BSE on Wednesday.