GVK Power & Infrastructure Limited (GVKPIL) signed a concession agreement for the Navi Mumbai international airport project on Monday.
The pact was inked through a special purpose vehicle, Navi Mumbai International Airport Pvt. Ltd. (NMIAL), with CIDCO, the nodal authority for the implementation of the project.
GVKPIL through its subsidiary, Mumbai International Airport Pvt. Ltd., holds 74% equity shares of NMIAL, while CIDCO holds 26%. The initial concession period is 30 years from the appointed date, which can be extended by 10 years.
The first phase of the airport is expected to be operational by 2020. The agreement was signed in the presence of Maharashtra Chief Minister Devendra Fadnavis by Dr. GVK Reddy, executive chairman, MIAL, and Bhushan Gagrani, vice-chairman and managing director, CIDCO, at Mantralaya.
Following the pact, GVK’s shares closed up by 5% at ₹21.10 in a stable Mumbai market on Monday, valuing the firm at ₹3,332 crore.
MIAL was declared the bidder in February last year for the project and received the Letter of Award from CIDCO on October 25.
