GVK To Spend Rs 8,500 Crore On Navi Mumbai Airport Phase-I, Ropes In Yes Bank As Lead Banker
The company has arranged its debt funding requirements for the phase-I of the project from Yes Bank.
The GVK Group will spend Rs 8,500 crore during the first phase of developing the Navi Mumbai International Airport, which will cater to 1 crore passengers per annum.
The Navi Mumbai airport is a public-private partnership venture of GVK’s Mumbai International Airport Ltd. (74 percent stake) and Maharashtra’s City and Industrial Development Corporation (26 percent stake). The greenfield international airport will be built on 1,160 hectares in phases and eventually cater to 60 million passengers.
"In the first phase, it is going to be about Rs 8,500 crore. It goes in phases. It will be 10 million passengers [in the first phase]. Maybe by spending another Rs 2,500 crore or Rs 3,000 crore, another 20 million can go ahead,” GVK Group Chairman GVK Reddy told shareholders at the annual general meeting of GVK Power & Infrastructure Ltd.
The concession agreement for Navi Mumbai International Airport was signed in January 2018 between Navi Mumbai International Airport and CIDCO.
Yes Bank Ltd. would be the lead bank and mandate lead arranger for Phase I and Phase II of the Navi Mumbai airport project, GVK Group said. The initial concession period is 30 years from the appointed date, extendable by 10 years.
Navi Mumbai International Airport Pvt. Ltd has proposed and submitted a master plan to CIDCO and has provided performance security as per the terms of concession agreement.
The company has arranged its debt funding requirements for the Phase-I from Yes Bank and is in the process of finalising financing and security documents. Nearly 94 percent of land development work was completed, as on Apr. 30, 2019, and about 85 percent of structures at the site have been demolished and vacated by CIDCO.
At the AGM, Reddy also said that GVK Group is determined to acquire the 13.5 percent stake that Bid Services Division Mauritius holds in Mumbai International Airport.
Bid Services Division Mauritius is a subsidiary of South Africa’s Bidvest Group Ltd.
The other shareholders of Mumbai International Airport are ACSA Global (Airports Company of South Africa), which owns 10 percent; Airports Authority of India (26 percent) and GVK Airport Holdings (50.5 percent).
GVK has already announced its intention to acquire ASCA Global's 10 percent stake.