MUMBAI: VK-led Mumbai International Airport (MIAL) has won the bid for the Navi Mumbai international airport, edging out rival GMR Group.
GVK, which runs the Mumbai and Bengaluru airports, offered 12.6% in revenue share to the project implementing authority, the City and Industrial Development Corporation (Cidco) of Maharashtra, reports Business Standard.
The contract would be awarded to the company offering the highest revenue share to Cidco, and GMR’s offer of 10.44% revenue share was lower by over two percentage points.
The long-delayed project had attracted only one bidder, MIAL, on two earlier occasions and Cidco was forced to make changes in project conditions.
Monday was the last day for submission of bids to Cidco after the two extensions, where the two companies were the only bidders.
Apart from GVK and GMR, Tata Realty and Hiranandani Developers had also cleared Cidco’s technical requirements, but both companies did not submit financial offers.
The Rs16,000-crore Navi Mumbai airport has been in the planning stages since the 1990s, but has faced delays and roadblocks in land acquisition and environmental clearances.
The state government hopes the first phase of the airport, which will cater to 10 million passengers, will be operational by May 2020. But aviation sector experts say it will take at least four years for completion.
Both Mumbai and Navi Mumbai airports will have to compete for traffic.
Cidco Joint Managing Director Prajakta Lavangare told Business Standard, “MIAL has offered us 12.6% revenue share, while GMR Group offered 10.44%. Cidco’s technical evaluation committee will meet on Tuesday to evaluate the offer, following which it will be submitted to the state government’s project monitoring and implementation committee.
The bid will later be submitted to the state Cabinet for its approval. The letter of intent will be awarded within a month after the state Cabinet’s nod and later the concession agreement will be signed with the selected bidder.”
“We remain committed towards creating, designing and managing yet another state-of-the-art airport and deliver a world-class gateway from Navi Mumbai,” said G V K Reddy, founder chairperson, GVK Group.