Navi Mumbai airport faces land hurdle/news09012012

City and Industrial Development Corpo-ration (Cidco) is exploring multiple options including a soft loan and viability gap funding to developers to make proposed Navi Mumbai airport project viable. These options are being considered with project affected farmers jacking up the price of land which is being acquired for the airport.

Cidco had initially estimated that first phase of the project, which can handle 10 million passengers annually in the first phase, will cost Rs5,260 crore. Last week, Larsen & Toubro chairman AM Naik expressed fears that the Navi Mumbai airport cost may go up by another Rs5,000 crore because of land acquisition cost and thus raising questions over project viability.

Cidco is yet to finalise its revised cost estimate. GVK and GMR groups, which run airports in Mumbai, Delhi, Bangalore and Hyderabad, are keen to bid for Navi Mumbai project. Apart from them Tata Realty and Infrastructure, Hindustan Construction Company, Essel Group and Reliance Infrastructure are said to be interested in this project.
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