GVK Power and Infrastructure Limited has signed a concession agreement with City and Industrial Development Corporation (Cidco) to create a special purpose vehicle (SPV) for developing the long-delayed Navi Mumbai International Airport.
In the SPV–Navi Mumbai International Airport Limited (NMIAL)–Mumbai International Airport Limited (MIAL) holds 74% stake and Cidco holds the balance 26%. MIAL, a GVK subsidiary, operates Chhatrapati Shivaji International Airport in Mumbai.
The first phase of the airport is expected to be operational in 2019 with a capacity to annually handle 10 million passengers. At the moment, the company is still carrying out pre-development works for levelling the earth. The rehabilitation and resettlement process for 3,500 residents is yet to be through.
By 2030, an estimated 60 million passengers are expected to use the facility once it is completed.
As per the terms of bidding and agreement, the concession period is 30 years, which can be extended by a decade.