GVK to build Navi Mumbai airport

GVK Power and Infrastructure, the company that looks after the Mumbai and Bengaluru airports, has won the bid to build the second airport of the economic capital in Navi Mumbai. GVK Power group owned Mumbai International Airport Ltd (MIAL) won the financial bid for Rs 16,000 core defeating arch rivals group GMR Infrastructure Ltd.

According to media reports, the company offered to share around 12.6 per cent of its revenue share of the revenue with the City and Industry Development Corporation (CIDCO). GMR Infrastructure had offered a share of 10.44 per cent for the same.GMR Infrastructure looks after the Delhi and Hyderabad airports.

GVK and GMR were the only bidders in the race to build the Navi Mumbai airport. The project is being developed to reduce the burden on Mumbai’s congested airport.

State-owned CIDCO, which is bidding out the project, had to defer the process twice after the project attracted only one bidder—GVK. Though industry giants- Tata Realty and Infrastructure Ltd and Hiranandani Developers Pvt Ltd had satisfied the technical criteria required to submit a financial bid, they refrained from doing so.

The first phase of the airport is expected to be operational by 2019, and will handle an estimated 10 million passengers annually. The Mumbai airport handles about 40 million passengers annually.

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