The agreement was signed through the creation of a special purpose vehicle -- Navi Mumbai International Airport Pvt Ltd (NMIAL) -- with CIDCO, the nodal authority of the Maharashtra government, overseeing the project implementation.
The GVKPIL, through its subsidiary, Mumbai International Airport Pvt Ltd, holds 74 per cent equity of NMIAL, while CIDCO holds the remaining 26 per cent.
The initial concession period is 30 years from the appointed date which is extendable by another 10 years and the agreement was inked in the presence of Chief Minister Devendra Fadnavis by MIAL Executive Chairman G.V.K. Reddy and CIDCO Vice-Chairman and Managing Director Bhushan Gagrani.
"We are delighted that GVK has got the opportunity to yet again display its technical and managerial prowess in the airports sector after having created the award-winning Mumbai Airport, for developing and managing the Navi Mumbai international airport," Reddy said on the occasion.
He said with the continued support of the Central and state governments, besides CIDCO and all other stakeholders, the company was confident of creating and delivering the much-needed second airport for the twin cities of Mumbai and Navi Mumbai.
The GVKPIL's subsidiary, MIAL, was declared the successful bidder for the Navi Mumbai international airport project in February 2017 and received the Letter of Award from CIDCO on October 25, last year.
The NMIAL, a greenfield airport, will come up in the PPP mode on 1,160 hectares land in adjoining Navi Mumbai, across the harbour, with the advantage of the upcoming Mumbai Trans Harbour Link.
CIDCO, which holds 26 per cent stake, will foot the pre-development expenses which will be later recovered from GVK, besides getting a 12.6 per cent share in the annual revenue from the mega-project.
The GVK, which currently manages the Mumbai International Airport Ltd, had submitted the highest revenue sharing model of 12.6 per cent per annum over its sole closest competitor GMR (which manages the New Delhi International Airport) which had quoted a figure of 10.44 per cent.
With two major airports under its belt, the GVK plans to soar and develop its airports business globally, Reddy had earlier said.
(This story has not been edited by Social News XYZ staff and is auto-generated from a syndicated feed.)
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