The airport development will be executed in three phases
20-year Master Plan for Chhatrapati Shivaji airportChangi Airport of Singapore to review the Master Plan
MUMBAI: Mumbai International Airport Pvt. Ltd. (MIAL), the consortium that has been awarded the modernisation of the Chhatrapati Shivaji International Airport (CSIA) in Mumbai, has drawn up a seven-year capital investment plan to the tune of Rs. 5,800 crore.
MIAL is a 74:26 per cent joint venture company between the GVK-SA Consortium and the Airports Authority of India (AAI). The consortium comprises GVK, Airports Company South Africa Ltd. (ACSA) and Bidvest Group Ltd. The Operations Management and Development Agreement (OMDA) was signed with AAI and the airport operations were handed over to MIAL on May 3. MIAL has made an upfront payment of Rs 150 crore to AAI.
The joint venture has started the development of a 20-year Master Plan for CSIA, which will be ready by the end of September and has appointed Netherlands Airports Consultants BV (NACO) to lead the process. Changi Airport of Singapore will review the Master Plan and help in improving the operations and management of CSIA. The Master Plan envisages an investment in excess of Rs, 7,000 crore.
The company has already tied up the financing requirements. For the debt and internal accruals component, all the commitments are in place and for equity, the consortium has given the first seven years underwritten bank guarantee to the government. MIAL has a 37.8 per cent revenue share agreement with AAI.
The airport development will be in three phases with the first phase being a 100-day plan branded `Parivartan' that will focus on a few areas like the terminals, airside, beautification, HR initiatives and cargo facilities.
The second phase will be upgradation of the existing terminals including Terminal 1A and Terminal 2, which is the international terminal. Once the Master Plan is submitted to AAI and the Government, MIAL will start the construction of the new terminal and related facilities. Upgradation of Terminal 1B, which is the Jet Airways terminal, is under way and will be completed shortly.
In terms of Human Resource development, as per the OMDA, MIAL will continue to operate the airport with the existing staff and train them to bring them to international standards. MIAL has introduced a number of initiatives and communication exercises with the staff and has appointed Mercer, a leading Human Resource consulting firm to help in change management and HR strategy. According to Sanjay Reddy, Managing Director, MIAL, "we will retain 100 per cent of the airport staff 2,654 employees for three years. After that, we have a right to absorb at least 60 per cent of the staff with the rest going back to AAI to continue on their rolls.''
The Master Plan will include aspects about the parallel runway and also a cargo `city'. Besides, a new single terminal in front of the international terminal at Sahar for both domestic and international flights is planned. A 6-8 lane elevated highway from the main highway into the terminal is planned and a spur from the mass rapid transport system (MRTS) into the terminal is being considered.