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Dec 2006

CM seeks green signal for Navi Mumbai airport project

     New Delhi: Maharashtra Chief Minister Vilasrao Deshmukh met Union Civil Aviation Minister Praful Patel today to get his approval for the new greenfield airport at Navi Mumbai. Senior ministry and state government officials who attended the meeting said Patel gave assurances to Deshmukh about resolving all pending issues relating to the aviation sector in Maharashtra within a month or two. After these pending matters were resolved, Patel said the Centre would then proceed for Cabinet approval for the building of the greenfield airport in PPP mode with the City and Industrial Development Corporation (CIDCO) of Maharashtra, the Maharashtra Government and the Airport Authority of India. The Minister also added that the bidding process and selection of JV partners for building the airport would be completed within 2007. Mumbai which is the financial and commercial capital of India requires aviation facilities of the highest order to meet rising aviation and air travel demands. The demand of air travel forecast for Mumbai Metropolitan Region reveals that the air travel demand is growing to the tune of 20 million passengers per annum in 2006-07 to 91 million passengers per annum by 2030-31.

     Mumbai Airport proposes to expand its facilities so that it can handle upto 40 million passengers per annum. Presently, the airport suffers airfield capability constraints and non- availability of land for expansion, thereby making the airport saturated by 2013. The location of proposed International Airport at Navi Mumbai has been considered on several parameters. Prominently amongst these, is expected to absorb the future growth in population, business and commercial activities of the Mumbai Region. The availability of physical and social infrastructure coupled with environment friendly site with lease re-settlement and rehabilitation makes the NMIA Project technically suitable and financially viable. Exactly, NMIA is situated on NH4B at a distance of 35 km. from Santacruz Airport near Panvel in the geographical center of Navi Mumbai. This new airport is expected to absorb 10 million passengers per annum in first operation year 2013, double to 20 million passengers per annum by 2020 followed by 30 million passenger per annum in 2025 and ultimately 40 million passengers per annum by 2030. The revised basic cost of airport project in 2006-07 is Rs. 4,235 crore spread in four phases. In the first phases, the cost is Rs. 1340 crore followed by Rs. 990 crore in second phase Rs. 465 crore in third phase and finally Rs. 383 crore in fourth phase. The project cost for the first phase for 10 million passengers per annum is Rs. 1825 crore considering the parameters of design, supervision & management, contingency and interest during construction. Upon the approval of the Government of India, the project implementation programme with its broad element drawn for airport facilities commence from January, 2007 and end at October, 2013. The Navi Mumbai International Airport is proposed to be executed on Public-Private Partnership basis by forming a Special Purpose Company (SPV) in which CIDCO and the Airports Authority of India (AAI) will hold an equity of 26 percent and the rest will be hold by private developer.
-Dec 18, 2006