Mumbai: The City and Industrial Development Corporation (CIDCO), the nodal agency for developing the Navi Mumbai international airport, is putting in place a comprehensive financing and development strategy for the airport. It will push a ‘hybrid-till model’ to calculate aeronautical rates for the proposed airport.
Under the hybrid-till model, a portion of non-aeronautical revenue (commercial revenue) at the airport is taken into consideration while fixing the landing and parking charges, user fees and other aeronautical charges.
Developers favour this model over the single-till model, which uses the entire non-aeronautical revenue to offset aeronautical charges.
Cidco will also finance the pre-development cost of Rs 1,900 crore, comprising Rs 1,400 crore towards land fill and Rs 5,00 crore for the shifting of transmission lines. This cost will be loaded on the joint venture company as the interest-free loan. Cidco’s vice-chairman and managing director Sanjay Bhatia told Business Standard: “We are going in for the hybrid-till model, which will be on the similar lines of the Mumbai airport. The entire project will be developed on 70:30 debt-equity ratio.”
13/11/13 Sanjay Jog & Aneesh Phadnis/Business Standard
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Under the hybrid-till model, a portion of non-aeronautical revenue (commercial revenue) at the airport is taken into consideration while fixing the landing and parking charges, user fees and other aeronautical charges.
Developers favour this model over the single-till model, which uses the entire non-aeronautical revenue to offset aeronautical charges.
Cidco will also finance the pre-development cost of Rs 1,900 crore, comprising Rs 1,400 crore towards land fill and Rs 5,00 crore for the shifting of transmission lines. This cost will be loaded on the joint venture company as the interest-free loan. Cidco’s vice-chairman and managing director Sanjay Bhatia told Business Standard: “We are going in for the hybrid-till model, which will be on the similar lines of the Mumbai airport. The entire project will be developed on 70:30 debt-equity ratio.”
13/11/13 Sanjay Jog & Aneesh Phadnis/Business Standard
