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India's City and Industrial Development Corporation of Maharashtra (CIDCO) has received the financial proposal from GVK-led Mumbai International Airport (MIAL) for the Navi Mumbai International Airport PPP.

The Project Monitoring and Implementation Committee’s (PMIC) approval is necessary to recommend the bid to the state cabinet for its acceptance. Subsequently, the CIDCO will issue a letter of intent to MIAL.

As we reported in February, MIAL won the bid for the airport, edging out rival GMR Group. The two compaies were the only bidders. GVK, which runs the Mumbai and Bengaluru airports, offered 12.6 per cent in revenue share and GMR offered a 10.44 per cent.

The tender process was launched in February 2014. MIAL also had submitted its proposal in February 2015 along with other 3 consortia, including GMR Delhi, Zurich Airport with Hiranandani Developers and MIA Infrastructure (Vinci airports with Tata Realty)

The Navi Mumbai airport project will be developed on 1,160 hectares. It is expected to have capacity of 10 million passengers per annum in its first phase and 60 million upon completion. The new airport is intended to relieve capacity pressure on the Mumbai Metropolitan Region, where air traffic demand is projected to exceed 40 million annual passengers by 2017 and 100 million passengers by 2030.

The airport will be developed on design, build, finance, operate and transfer (DBFOT) basis.

The total project investment is estimated at INR145 billion (US$2,28 billion). CIDCO will provide 26 per cent equity to establish the special purpose vehicle (SPV) which will carry out the project.

Construction works for the first stage will start by December 2019. The airport is unlikely to commence operations before March 2024.

CIDCO vice chairman and managing director Bhushan Gagrani told DNA,

’’CIDCO has received stage II forest clearance in May. The pre-development work has already begun. PMIC will meet on October 18 and after its recommendation the state cabinet will give its approval for MIAL’s bid. Later, LoI will be issued.’’