MIAL, oil marketing companies form JV

MIAL, oil marketing companies form JV

Mumbai: Mumbai International Airport Pvt. Ltd. (MIAL) on Thursday signed a memorandum of understanding (MoU) with three public sector oil marketing companies to set up a joint venture company.

The JV company, Mumbai Aviation Fuel Farm Pvt Ltd, in which each entity will hold 25%, will set up an integrated aviation fuelling facility at the airport.

MIAL, a GVK-led consortium that operates Mumbai’s Chhatrapati Shivaji International Airport (CSIA), Indian Oil Corp.(IOC), Bharat Petroleum Corp. Ltd (BPCL), and Hindustan Petroleum Corp. Ltd (HPCL) will hold 25% stake each in the JV.

The three oil marketing companies sell and fix the prices of aviation turbine fuel ATF prices on a mutually agreed common formula. The joint venture company will develop the integrated facility at the site of the existing IOCL and HPCL facilities near terminal 1A by upgrading existing facilities, increasing tank volumes, and linking it to the hydrant systems that supply fuel at the hydrant pits of aircraft parking stands, MIAL said in a statement.

The new facility will do away with the separate storage terminals by oil marketing companies or ATF fuelling facilities. This will also free up land to develop other airport facilities.