GVK Power Signs Agreement To Develop Navi Mumbai Airport
Navi Mumbai airport project has been held up for two decades due to land acquisition and environmental issues.
GVK Power and Infrastructure Ltd. today signed an agreement to develop the Navi Mumbai airport, which had been held up for nearly two decades due to land acquisition and environmental issues.
The concession agreement was signed through the creation of a special purpose vehicle, Navi Mumbai International Airport Pvt. Ltd, with City and Industrial Development Corporation of Maharashtra Ltd., GVK Power said in an exchange filing. CIDCO is the nodal city planning agency of the Maharashtra government.
GVK Power and Infrastructure Ltd, through its subsidiary Mumbai International Airport Pvt. Ltd, holds 74 percent stake of the SPV, while CIDCO holds 26 percent. The initial concession period is 30 years, which can be extended to another 10 years, the filing said.
The GVK-led Mumbai International Airport Pvt. Ltd., which operates the Mumbai airport, had won the bid in February 2017 and received the letter of award from CIDCO in October.
GVK Reddy, executive chairman of MIAL said, “We are delighted that GVK has got the opportunity to yet again to display its technical and managerial prowess in the airport sector after having created the award winning Mumbai airport, for developing and managing the Navi Mumbai International Airport.”
Shares of GVK Power were locked at upper circuit at Rs 21.10 on the BSE.