Navi Mumbai Airport’s ‘Phase 1’ Construction Cost Escalates By 50%!

Credit Rating Agency, CRISIL, has estimated that the cost of construction for Navi Mumbai Airport’s ‘Phase 1’ will be more than what the authorities had initially thought.

Here are all the details about it –

• The construction cost is expected to go up to Rs 13,562 Crore which is almost 50% more than the earlier projected cost of Rs 9,600 crore.
• GVK group, which is constructing the airport, has announced a partnership with Yes Bank to fund the project.
• CRISIL has given an A+ stable rating for the project’s Rs 10300 Crore bank loan.

The planning process for Navi Mumbai Airport started back in early 2000’s, but pre-development work began in June 2017 as the project was stuck due to litigation and land acquisition issues.

The airport is being developed under a public-private partnership model. City and Industrial Development Corporation (CIDCO) is the project’s planning authority. In 2012, CIDCO had prepared a master plan for the airport to be developed in four phases, at a projected cost of Rs 16000 Crores.

In March 2018, GVK group had appointed Zaha Hadid Architects, a UK-based firm, to design the airport’s terminal building and air traffic control tower. The plans have been submitted to CIDCO.

According to the agreement between Mumbai International Airport Limited (MIAL) and CIDCO, the deadline for the commercial launch of the Navi Mumbai airport was set in 2021. But, the Maharashtra government is keen to launch operations by December 2019.