Cidco floats global tender for building of Navi Mumbai International Airport

A global tender for the building of Navi Mumbai International Airport near Mumbai, has been floated by the City and Industrial Development Corp of Maharashtra Ltd (Cidco).

Cidco floats global tender for building of Navi Mumbai International AirportThe proposed airport, with a passengers handling capacity of 60 million a year, beginning with 10 million a year in the first phase,  would cover an area of 1,160 hectares. The first stage of tender would involve pre-qualification of applicants followed by requests for proposal. The cost of the works has not been disclosed.

The environmental clearance had been secured from the central government almost three years ago, but the project was not able to move ahead due to protracted negotiations with the farmers for 475 hectares. The farmers were demanding Rs20 crore per hectare, or 35 per cent of the land back as a developed plot, but Cidco was not willing to offer more than 22.5 per cent.

In November, the state government and farmers from Ulwe village near Panvel in Navi Mumbai struck an agreement on the compensation package for the sale of land. The state government had agreed to give 22.5 per cent land back to farmers as developed plots from the land it acquired. Also, farmers, who would be displaced due to the project would get houses three times the size of their existing houses.

Mumbai International Airpot Limited (MIAL), which currently runs the city's Chhatrapati Shivaji airport, has the right of first refusal (ROFR) in the bidding process for the proposed Navi Mumbai airport in case its bid was not less  than 10 per cent of the highest bidder. Bidders need to have a minimum net worth of Rs 2,375 crore to be eligible to file request for qualification (RFQ) for the Navi Mumbai international airport.

Cidco, a nodal agency for the proposed airport, in its RFQ issued today said the ''Highest Bidder'' would be the one offering the highest premium. However if the premium quoted by MIAL at the bid stage was not less than 10 per cent lower than the quote of the bidder quoting the highest premium, MIAL would be invited to match the highest ranked bid in order to exercise the ROFR.

"In the event MIAL matches the highest ranked bid, it shall be deemed to be the highest bidder and the project shall be awarded to MIAL. if the Highest Bidder quotes a Premium of 30% (thirty percent) and the premium quoted by MIAL is equal to or greater than 27%, then MIAL shall be provided an opportunity to match the highest ranked bid in order to be declared as the Highest Bidder," RFQ adds.

Bidders would be allowed to submit RFQ till 18 June. The airport would be built through public private partnership on design, build, finance, operate and transfer (DBFOT) basis.