Home >industry >infrastructure >Cidco floats global tender for Navi Mumbai airport

Mumbai: The City and Industrial Development Corp. of Maharashtra Ltd (Cidco) has floated a global tender for building Navi Mumbai International Airport near Mumbai.

The proposed airport would be developed over an area of 1160 hectares (ha) and will have a capacity of handling 60 million passengers a year, begining with 10 million a year in the first phase.

The first stage of tender would be involving pre-qualificaton of applicants followed by requests for proposal. Maharashtra chief minister Prithviraj Chavan and Cidco officials are expected to brief the media on the matter on Wednesday.

The cost of building the airport was not disclosed.

Despite securing environmental clearance from the central government almost three years ago, the project was unable to move ahead due to protracted negotiations with the farmers for the remaining 475ha. The farmers wanted a compensation of 20 crore per hectare, or 35% of the land back as a developed plot. Cidco was unwilling to offer more than 22.5%.

In November, the state government and farmers from Ulwe village near Panvel in Navi Mumbai reached an agreement on the compensation package for the sale of land. The state government had agreed to give 22.5% land back to farmers as developed plots out of the land acquired from them. Besides, the farmers who will be displaced due to the project will be given houses which are three times the size of their existing houses.

The original estimate in 2008 for building the Navi Mumbai airport was 8,000 crore, but this has increased to 12,000 crore now.

The Navi Mumbai airport was conceived because the Mumbai international airport, managed by the GVK group, is expected to reach its peak capacity of 40 million passengers a year by end of the current fiscal year.

On 19 August 2010, former aviation minister Praful Patel said the Navi Mumbai airport should have been operational by 2011 in view of the growing traffic and congestion at Mumbai airport.

The government gave an in-principle approval for setting up the new airport in 2007.

The Hyderabad-based GVK group holds the first right of refusal for developing the proposed airport in Navi Mumbai as the new airport is coming up within 150km of an existing airport being operated by the group.

GVK had insisted on the inclusion of this clause in the Mumbai airport contract with the central government.

If GVK’s bid falls short of the highest bid by 10% or less, it will have the right to revise its offer to match the top bid and operate the airport.

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