Mumbai: The cost of Navi Mumbai International Airport (NMIA) has sharply increased by a record 305.76% to Rs 14,573 crore in 2011-12 from Rs 4,766 crore in 2006-07. The cost has risen due to increase in airport design capacity from 40 million to 60 million per annum, rise in unit rate of terminal cost on account of world class terminals, hike in final airport platform level from 5.5 m to 8 m.
Besides, the cost has surged due to increase in cost of land acquisition and relief and rehabilitation component, price escalation and also due to re routing of electrical lines and offsite infrastructure.
On top of it, price escalation is due to the ongoing inflation with steep rise in price of cement, steel and fuel along with the sharp escalation in cost of manpower, materials and equipment. An escalation factor of 10% per year has been factored in the earlier cost estimates.
01/04/13 Sanjay Jog/Business Standard
