The Government today gave its approval for the construction of an International Airport at Navi Mumbai. The Airport will be developed as a Greenfield Airport through Public Private Partnership (PPP) along the lines of the Greenfield Airports at Hyderabad and Bangalore.
The Ministry of Civil Aviation had sought an ‘in principle’ approval of the Government for the construction of a second international airport in Mumbai as the updated air traffic forecasts had revealed that if there were no constraints, the number of passengers at Mumbai would reach 27.5 million per annum (mpa) around 2010, close to 40 mpa in 2015 and more than 80 mpa in 2026. Inspite of the restructuring and modernization of the Chhatrapati Shivaji International Airport by the JVC Mumbai International Airport Pvt. Ltd., and significant improvements of existing airport infrastructure, the current airport would be fully saturated by 2013. It was therefore, felt imperative that the proposed second airport at Mumbai should be operational before 2013 to meet the increasing air traffic demand as well as uninterrupted economic growth of the region.
The State Government of Maharashtra, had, proposed a site in Navi Mumbai for the second airport because of the availability of developed infrastructure, power, water supply, roads and communication, minimal environmental disturbance and limited rehabilitation issues.
A techno-economic feasibility study was conducted by the City and Industrial Development Corporation of Maharashtra Ltd., (CIDCO). A detailed simulation study was also carried out by the International Civil Aviation Organisation (ICAO) to ensure conflict free operation at both the airports, i.e. the existing and the one proposed at Navi Mumbai. The simulation study has revealed that with the appropriate procedures in place, simultaneous operation of both Mumbai and Navi Mumbai International airports is feasible.
The Government of Maharashtra has intimated that the proposed international airport at Navi Mumbai had been considered on several parameters. Prominent amongst these is the fact that Navi Mumbai is expected to absorb the future growth in population, business and commercial activities of the Mumbai region. The proposed airport is located on NH4B at a distance of 35 km. from Santacruz Airport near Panvel town in the geographical center of Navi Mumbai. An area of approx. 1140 Hectares (Ha) has been earmarked for the development of the second airport. Out of this about 620 Ha of land is in possession of CIDCO. Another 225 Ha of government land is being transferred to CIDCO and remaining 295 Ha is private land, which is under acquisition.
CIDCO has worked out the total project cost of the airport as Rs. 9970 crore envisaging development in 4 phases viz. Phase-1 (2008-12), for a planned capacity of 10 mpa at a projected cost of Rs. 4200 crores; Phase-2 (2015-2017) augmenting planned capacity to 20 mpa at an estimated cost of Rs. 1896 crores; Phase-3 (2020-2022) for additional capacity of 10 mpa at Rs. 1600 crores and Phase-4 (2026-2028) further increasing the capacity to 40 mpa at an estimated cost of Rs. 2272 crores. Further the Business Plan as formulated by CIDCO in conjunction with IL&FS reflects an IRP of 17.91% thus, making the project financially viable and attractive for development through PPP. The Business Plan envisages that CIDCO will provide adequate land for meeting the operational requirement of Navi Mumbai International Airport as well as 10% additional area on city side for commercial exploitation for generating non-aeronautical revenue. CIDCO has also agreed to bear the cost of land and the land development. Part of this cost will be accounted towards CIDCO equity and the rest will be recovered through lease rentals from the project over a period of time.
A Steering Committee will be set up by the Ministry of Civil Aviation comprising of officials of the State Government, Ministry of Civil Aviation, CIDCO & AAI as this state involves coordination and allocation of resources. This Committee will oversee the structure and implementation of the project including funding proposal, preparation and tender and other documents, bidding and selection of the strategic partner.
The Policy on Airport Infrastructure (1997) provides that no Greenfield airport will normally be allowed within an aerial distance of 150 kilometers of an existing airport. The need for a second airport has arisen due to the projected saturation of the existing Mumbai airport. Further, under the State Support Agreement (SSA) executed with MIAPL, a Right of First Refusal (ROFR) with regard to a second airport within the radius of 150 km. of the Chhatrapati Shivaji International Airport, Mumbai has been given to MIAPL. This position will be incorporated in the tender documents for the bidding process proposed to be undertaken for selection of the private partner.
MC/GK
(Release ID :28360)