India's GVK wins bid to develop second Mumbai airport (updated)

GVK Power & Infrastructure

13/02/2017 12:58

(Adds quotes, details) 
    MUMBAI, Feb 13 (Reuters) - India's GVK  GVKP.NS , which 
operates Mumbai's airport, has won the contract to develop a 
second outside the financial capital to ease congestion and 
cater for surging demand. 
    GVK outbid GMR Infrastructure Ltd  GMRI.NS , operator of New 
Delhi's airport, for the 160 billion-rupee ($2.4 billion) Navi 
Mumbai project, Mohan Ninawe, a City and Industrial Development 
Corp. of Maharashtra (CIDCO) spokesman, told Reuters on Monday. 
    It will be built on a public-private partnership model, with 
the developer having to share part of the revenue. 
    GVK-led Mumbai International Airport Limited (MIAL) offered 
a 12.60 percent revenue share to CIDCO, higher than 10.44 
percent offered by GMR, Ninawe said. 
    The new airport, first proposed in 1997 and approved by the 
government in 2007, had been delayed by problems in buying land 
and in gaining necessary government permissions such as 
environmental clearance. 
    The first phase of the airport is expected to be operational 
in 2019 and will be able to handle 10 million passengers 
annually, Ninawe said. 
    The new airport is expected to handle 60 million passengers 
in 2030 when it is expected operate at full capacity, he said.  
 ($1 = 67.0200 Indian rupees) 
 
 (Reporting by Rajendra Jadhav; Editing by Biju Dwarakanath and 
Alexander Smith) 
 ((rajendra.jadhav@thomsonreuters.com; +91-22-6180-7153 ; 
Reuters Messaging: 
rajendra.jadhav.thomsonreuters.com@reuters.net)) 
 
Keywords: GVK AIRPORT DEV MUMBAI/AIRPORT