Eight months after Cidco, nodal authority for the Navi Mumbai airport project, closed the finance bid with GVK-led Mumbai International Airport Ltd, the state cabinet approved the award to the highest bidder, paving the way for formation of a special purpose vehicle to build the Rs.16,000 crore airport.
The cabinet endorsed the techno-economic approval given by the project management implementation committee, headed by chief Secretary, last week on October 18--a day before Diwali. Cidco senior PRO Mohan Ninawe said, “The cabinet was scheduled to meet October 31 (to discuss the issue), but it has the given final approval before that.“
MIAL offered a 12.6% share in annual gross revenue to Cidco against the 10.44% offered by its rival GMR Airports in the financial bid that was closed on February 13, 2017. As per Cidco consultants, the passenger count is expected in the first year of operation at 15 million, which will increase to 30 million in 2025 and to 40 million in 2030.The maximum count is pegged at 60 million in 2035.
The state cabinet nod, the last of the approvals required for the greenfield mega project, is the official sanction to the project to be undertaken in phases.The first phase involves an investment of around Rs.7,000 crore with the first flight take off scheduled for 2020.
The cabinet nod will be followed with Cidco forwarding the letter of award (appointment) to MIAL, said Cidco joint MD Prajakta Lavangare Verma. The next step will be formation of the SPV. The new company will be a joint venture of GVK-led MIAL having 74% and Cidco 24% of equity participation. Cidco will apportion a certain percentage of its earnings to the Airports Authority of India, said Ninawe.