GVK inks concession agreement for Navi Mumbai airport

GVK Power and Infrastructure Limited has inked a concession agreement with City and Industrial Development Corporation (Cidco) to create a special purpose vehicle (SPV) for developing the Navi Mumbai International Airport.

The SPV named Navi Mumbai International Airport Limited (NMIAL) will have a share holding pattern of 74 per cent stake by Mumbai International Airport Limited (MIAL) and the remaining 26 per cent by Cidco.

It is to be noted that MIAL, a GVK subsidiary, operates Chhatrapati Shivaji International Airport in Mumbai.

The first phase of the airport is expected to be operational in 2019 with a capacity to annually handle 10 million passengers. Once it is completed, an estimated 60 million passengers are expected to use the facility by 2030.

According to the terms of bidding and agreement, the concession period is 30 years, which can be extended by a decade.

Image Credit : thehindubusinessline.com

News Reporter