Navi Mumbai Airport sees four bidders

Four bidders have entered the race for the tender on the PPP project of a second airport to serve India’s most affluent state, Maharashtra.

The City and Industrial Development Corporation of Maharashtra (CIDCO) has announced the names of four consortia which have manifested interest in the much delayed Rs145 billion (€2 billion; $2.3 billion) Navi Mumbai Airport project, as pre-construction development work finally kicks off with the land acquisition phase having reached closure last month.

Although the project has been approved since 2007 and was originally scheduled to be completed in 2015, market commentators have highlighted the lukewarm welcome it received previously from the industry. The four tenders which came in last week from GMR Delhi, GVK-led Mumbai International Airport (MIAL), Zurich Airport with Hiranandani Developers, and MIA Infrastructure (comprised of Vinci and Tata Realty), reportedly took competitors and authorities by surprise.

MIAL has the first right of refusal if its bid for the airport is up to 10 percent lower than the highest offer. MIAL is a joint venture between a consortium led by Bangalore-based GVK Industries, Airports Company South Africa, and South African diversified investment holding Bidvest, collectively representing a 74 percent stake in the joint venture, and Airports Authority of India (26 percent).

Pre-qualification results are to be announced on 21 March at the earliest and beginning of April at the latest.

The four developers will submit their financial bids by August and CIDCO will select the final bidder by October. The first phase of the airport is expected to be completed by 2019 with a passenger capacity of 10 million.

The Navi Mumbai Airport is to be built on 1,160 hectares located amid hills and on marsh lands. It will have a yearly passenger flow of 25 million by 2025, to reach 60 million by 2030.