Mumbai: GVK Power and Infrastructure (GVKPIL) on Monday said it has signed a concession agreement with Cidco to create a special purpose vehicle for developing the state’s much ambitious Navi Mumbai international airport.

GVK through its subsidiary, Mumbai International Airport (MIAL) holds 74% equity shares of the SPV- Navi Mumbai International Airport (NMIAL) while Cidco holds the balance 26%, the company said in a statement. The initial concession period is 30 years from the appointed date which is extendable for a further 10 years, it said.

“With the continued support of the Centre and Maharashtra government, Cidco and all our stakeholders, we are confident of creating and delivering the much needed second airport for the twin cities of Mumbai and Navi Mumbai," company’s founder chairman and managing director GVK Reddy said.

MIAL was declared the successful bidder in February last year for the Navi Mumbai airport project and had received the letter of award from Cidco on 25 October 2017. The 16,000 crore greenfield airport will be built on 1,160 hectares on public private partnership mode.

The first phase of the airport is expected to be operational in 2019 and will be able to handle 10 million passengers annually. The new airport is estimated to handle 60 million passengers by 2030 when it is expected to operate at full capacity.

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