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- By Parinda News Bureau, February 28, 2006, 11:33 IST
Mumbai: Mumbai airport will soon get a makeover which it sorely needs.
Delhi and Mumbai handle about 57 per cent of the passenger traffic and during the year 2004-05 Mumbai alone had 15,000 aircraft movements.
The GVK consortium comprising GVK Industries, Airports Company South Africa and The Big Vest Group Ltd that emerged successful bidder for the project is going to provide basic facilities that will elevate the airport into a world class one.
Some of the mandatory projects that i have to be completed within two years or by 2010 are construction of new high-speed taxiways, an international cargo terminal, domestic apron expansion and a new domestic terminal car park:
The Joint Venture Companies (JVCs) will be operating, managing and developing the airports for a period of 30 years with an option of extension of the term for an additional 30 years. The JVCs are required to submit the Initial Development Plan for a period of 20 years, master plan over a period of 20 years and also to maintain certain service quality requirements, The bidders I who don't adhere to these requirements will attract suitable penalties.
In the initial phase, a capital investment to an extent of Rs 6,131 crore will be made for Mumbai airport for a period of 20 years in 4 stages of 5 years each. The JVCs will be subject to a 49 per cent maximum permissible limit of Foreign Direct Investment.
Within three months from the date of execution of Operation Management and Development Agreement, subject to fulfilling the conditions' precedent, the JVC will be in possession of the airports. Mandatory Capital Projects of Mumbai airport are likely to be completed on or before March 31, 2010.
Amidst all these, the Union Government has also taken into consideration the interest of the Airport Authority of India (AAI) employees. The process provides for extension of operational support by AAI during the first three years of the concession period, wherein the employees at these airports would continue to be employees of the AAI and enjoy the same terms and conditions of service as other AAI employees. On the expiry of the three-year period, the bidder will absorb 60 per cent of the employees working at the airports as on the effective date of transaction. Those employees, who do not opt for the employment with the JVCs will continue to remain as employees of AAI till their superannuation or otherwise.
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