GVK achieves financial closure for Navi Mumbai airport

GVK achieves financial closure for Navi Mumbai airport

MUMBAI: A GVK-led venture that has won the bid for a Rs 16,000 crore second airport project in Mumbai, Saturday announced the financial closure for its first phase of construction.

Yes Bank will be the lead bank and mandate lead arranger for phase I and phase II of the airport project, a statement said.

The concession agreement for the airport was signed on January 8, 2018 between the GVK arm Navi Mumbai International Airport (P) Ltd and the City and Industrial Development Corporation of Maharashtra Ltd. (CIDCO), the nodal body for the project.

CRISIL has assigned an A+ or stable rating for the project, the statement said.

NMIAL is a public private partnership venture in which the GVK led Mumbai International Airport (P) Ltd., (MIAL) that operates the existing airport in the city has a 74% stake. CIDCO holds the remaining 26%.

MIAL consists of GVK Industries Ltd, Airports Company South Africa and Bidvest. They together hold 74% of the existing Mumbai airport and the state-run Airports Authority of India holds the rest.

The new international airport will be built on 1,160 hectares in phases and will eventually cater to 60 million passengers per year.

The initial concession period is 30 years from the appointed date and is extendable for a further 10 years.

The Navi Mumbai airport is seen as an imperative alternative to the existing Mumbai airport, India’s second busiest and its most saturated.