Navi Mumbai International Airport Concession Agreement: What You Need to Know
The Navi Mumbai International Airport, also known as the NMIA, is a much-awaited project in the state of Maharashtra, India. With its strategic location close to Mumbai, the airport is expected to boost economic growth and increase connectivity, both domestically and internationally. In this article, we`ll take a closer look at the Navi Mumbai International Airport Concession Agreement and what it means for the development of the airport.
What is the Concession Agreement?
The Concession Agreement is a legal document that outlines the terms and conditions of the public-private partnership (PPP) agreement between the Maharashtra government and the developer of the NMIA project. The developer is a consortium consisting of the GVK group and the City and Industrial Development Corporation (CIDCO). The agreement was signed in January 2018 and is valid for 30 years, with an option for a 10-year extension.
What are the Key Terms of the Agreement?
Under the terms of the Concession Agreement, the developer is responsible for financing, designing, constructing, developing, commissioning, operating, and maintaining the NMIA project. The developer has the right to collect revenue from the airport, including passenger charges, fuel charges, and other ancillary revenue.
The Maharashtra government has granted several concessions to the developer to support the NMIA project, including the following:
1. Land Acquisition: CIDCO has acquired the required land for the airport project and has transferred it to the developer at a nominal price.
2. Regulatory Support: The state government has provided regulatory support to the developer for obtaining necessary approvals and clearances from various government agencies.
3. Financial Incentives: The Maharashtra government has granted various financial incentives to the developer, including tax exemptions and loan guarantees.
What are the Benefits of the NMIA Project?
The Navi Mumbai International Airport is expected to bring numerous benefits to the region, including the following:
1. Increased Connectivity: The new airport is expected to increase connectivity within India and with other countries. The airport is designed to handle 10 million passengers per year in phase one and up to 60 million passengers per year in the long term.
2. Boost to Economic Growth: The NMIA project is expected to boost economic growth in the region, creating new job opportunities, and stimulating investment.
3. Reduce Congestion: The existing Mumbai International Airport is currently operating at full capacity, leading to congestion and flight delays. The NMIA project is expected to reduce congestion and improve the overall aviation infrastructure in the region.
The Navi Mumbai International Airport Concession Agreement is a critical document that outlines the terms and conditions of the public-private partnership for the development of the NMIA project. The agreement provides concessions to the developer to support the project and bring numerous benefits to the region, including increased connectivity, a boost to economic growth, and reduced congestion. With the NMIA project expected to be completed in 2024, it will be interesting to see how it impacts the aviation sector and the regional economy.