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GVP Power and Reliance interested in Navi Mumbai Airport; Fraport bid unlikely

24-Nov-2010 10:56 AM

India's GVK Power and Infrastructure Ltd stated its venture operating Mumbai International Airport will bid to manage the planned Navi Mumbai Airport with GVK Power CFO A Issac George stating: “We are certainly going to bid" (Bloomberg/Hindustan Times, 23-Nov-2010). Mumbai International Airport Pvt, 37% owned by GVK, has the right of first refusal on the airport under the terms of agreement signed when it took over the airport in 2006. GVP stated it is "happy that the process for development of the Navi Mumbai airport is moving forward. We look forward to the bidding process." Reliance Infrastructure Ltd stated it may also compete for the 74% that the government is offering in the planned INR150 billion (USD33 billion) airport with spokesman Ravi Muthreja commenting that the company will bid for the new airport once the request for proposals has been published. Fraport Head of Indian Operations Ansgar Sickert stated the company, which owns a stake in the operator of New Delhi International Airport, is unlikely to bid for the airport, commenting: “We think that the cost of developing the airport will be very high. As air traffic shifts toward low-cost travel, we don’t think it is viable.” Meanwhile, City Industrial Development Corporation (CIDCO), the promoter of the airport, commented that it "hopes to float tenders by April next year and start construction in 12 months”.