GMR wins bid for expansion, devpt of city airport

Source: The Hitavada      Date: 29 Sep 2018 11:58:11


Business Bureau,

The estimated cost of the project is Rs 1,685 crore and it will be based on design, build, finance, operate, transfer mode

the proposal of Grandhi Mallikarjuna Rao (GMR) Group has been shortlisted by the evaluation team for the expansion and development of Dr Babasaheb Ambedkar International Airport, Nagpur. Maharashtra Airport Development Company (MADC) had floated the tenders which were opened on Friday. Now, the said proposal would be sent to the Government for its final approval.

The Government would take the final decision and award the contract to GMR after ensuring all statutory compliances, said a senior official. Altogether five companies -- Essel Infraprojects, GMR, GVK, PNC Infratech and a consortium of Tata Realty and Tata Projects -- had submitted their bids for the contract. The expansion work is estimated to cost about
Rs 1,685 crore.

The project to expand the airport will be on a design, build, finance, operate, transfer (DBFOT) mode.  According to the terms of the contract, it will be awarded to the bidder who offers the highest revenue share with MADC. For this, a special purpose vehicle will be formed for the project in which MADC will hold 26 per cent while the bid-winner will hold 74 per cent stake. 

In order to service and growing volume of passenger traffic from Nagpur airport, MADC planned to expand the airport in stages. At the end of the first phase of development by 2022, the annual passenger capacity will go up to 40 lakh from 10 lakh at present. As against the current annual capacity, Nagpur airport handled 19 lakh passengers in the financial year 2017. The passenger capacity surged by 14 per cent to 21 lakh during the financial year 2018. 

According to Ernst & Young (E&Y) whom MADC has engaged for the purpose, estimated that passenger volumes will touch 25 lakh this year. E&Y has forecast passenger traffic to grow 15 per cent year-on-year (Y-o-Y) for Nagpur airport. The Nagpur airport currently has one runway which is three kilometer long and 30 metre wide.

The plan is to construct a new runway that will be 4.5 kilometre long and 60 metre wide.  Also, the bid-winner will have to construct the terminal building, hangars and a taxiway that can be used to evacuate aircraft to the two upcoming maintenance, repair and overhaul (MRO) facilities. The airport currently has one MRO, run by Air India.

Similarly, a new apron, approach road, parking facility and better passenger services will have to be provided according to the contract.  A world-class terminal building with an increased capacity for cargo and passenger planes will have to be built. The new airport will be able to handle a total 35 planes including two cargo planes.