Saturday, May 06, 2017

Navi Mumbai airport may not be completed by deadline

The GVK group, which operates Mumbai's Chhatrapati Shivaji International Airport, which won the bid for building a second airport for city in Navi Mumbai in February, is still waiting for a Letter of Allotment (LoA) from CIDCO, which is the nodal agency for the project. This may put severe constraints on concessioner (GVK) to complete the project in the given time frame.

A senior official from GVK group, on condition of anonymity, said, "Unless we have a LoA in our hand, we can't approach financial institutions to raise loans for a project. It is going to take around six months to achieve financial closure once we get LoA."

The GVK group left behind rival GMR, which operates Delhi's Indira Gandhi International Airport, to bag the project, offered CIDCO a revenue share of 12.6% as against GMR, which offered revenue share of 10.44%.

However CIDCO's managing director Bhushan Gagrani claimed, "The issue of LoA won't affect the deadlines as it is going to take another year or one and half year for us to carry out necessary activities like handing over the land to GVK as preliminary work like cutting of hillock, diverting riverlet, rehabilitating affected persons (PAP), etc."
05/05/17 Makarand Gadgil/Mumbai Mirror