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The decision to set up a second airport in Mumbai is driven by the huge growth in air travel forecast for the metropolitan region. Studies show that the demand for air travel is likely to grow to around 91 million passengers annually from the current level of 20 million.

According to sources, the site of the proposed international airport in Navi Mumbai has been selected after taking into consideration a host of factors including the capacity of the region to absorb future growth in population, business and commercial activities. The availability of physical and social infrastructure makes the project suitable and financially viable, the sources indicated.

The proposed new airport, cleared by the International Air Transport Association (IATA), will be in addition to the modernisation work currently being undertaken by a consortium headed by the GVK Group at the existing Mumbai airport.

Four phases

The new airport, which is to come up on 1,140 hectares, will have two parallel and independent runways for simultaneous and independent operations with provision for a full-length taxiway on either side of the runways. The airport is expected to absorb 10 million passengers per annum in 2013, which is expected to be the first year of operation. The passenger handling capacity of the airport is expected to double to 20 million passengers per annum by 2020 and it will be in a position to handle 40 million passengers annually by 2030.

During 2006-07, the revised basic cost of the airport project was estimated at Rs 4,235 crore which is to be implemented in four phases. In the first phase the cost likely to be incurred has been estimated at Rs 1,340 crore while during the second phase an estimated expenditure of Rs 990 crore is likely to be incurred.

For the third phase an expenditure of Rs 465 crore has been estimated while in the final phase the project is likely to incur an expenditure of Rs 383 crore.

PPP route

The new airport is to be executed through the public-private partnership route by forming a special purpose vehicle (SPV) in which the City and Industrial Development Corporation of Maharashtra (CIDCO) and the Airports Authority of India (AAI) will hold 26 per cent equity.

The remaining equity will be in the hands of private sector companies. It would be the job of the SPV to come up with a detailed design of the project, issue EPC contract to build, manage the airport during the concession period before transferring the asset back.

After the approval of the Union Cabinet is received, CIDCO would follow the guidelines laid down by the Ministry of Civil Aviation for setting up a greenfield airport by appointing a consultant.

The sources indicated that the consultant would prepare the various project reports, invite Expressions of Interest and also issue the bid documents.

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