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Navi Mumbai airport: CIDCO mulls extension of RFQ deadline up to Dec end

The state-run City and Industrial Development Corporation (CIDCO) is expected to further extend the deadline for the submission of request for qualification (RFQ) up to December end for the Navi Mumbai international airport. 

The delay is because the union civil aviation ministry is yet decide on the single or dual till approach and also on the share holding pattern. 

CIDCO, which had issued RFQ on February 5, had already extended the deadline to July 30, then September 2 and October 31 and December 10.

The agency is likely to take a decision in this regard in day or two.  It is also currently engaged in the acquisition of 456 hectares of private land. 

CIDCO officials are to brief chief minister Devendra Fadnavis on the bidding process, land acquisition and extension of deadline for RFQ submission today. 

A CIDCO official told Business Standard, “RFQ deadline is likely to be extended upto December end as the civil aviation ministry’s consent on single or dual till approach is still awaited.” He informed that Fadnavis has already talked to the union civil aviation minister Ashok Gajapathi Raju for any early nod for the same.

CIDCO is the nodal agency for the Navi Mumbai airport project, which needs 2,268 hectares, out of which about 1,160 hectares will be used for aeronautical purposes.

As per the ‘single till’ principle, all airport related assets and costs are taken into account in determining the allowed tariff rates or return or a general price cap, after considering all revenues from non-aeronautical services.  

In case of ‘dual till’ model, the revenues, costs and assets of an airport are allocated between two heads, aeronautical and non-aeronautical. In a pure dual till, the ‘regulatory till’ is made up of revenues, costs and assets (and thus the costs of financing those assets) that are solely associated with aeronautical activities plus a share of the common costs and assets that support both aeronautical and non-aeronautical activities. 

The official said that CIDCO has already amended the RFQ whereby the equity participation by a scheduled airline, cargo airline or its associates has increased to 26% from 10% in the special purpose vehicle (SPV) that will execute the project. According to the revised document, 74% stake will be held by the private consortium, while CIDCO will retain the remaining 26%.

Further, the term of concession will be for a minimum period of 30 years and the premium will constitute the sole criteria for evaluation of bids. Further, the bidder will have deposit a bid security of Rs 50 crore instead of 1% of the estimated project cost refundable no later than 120 days from the bid due date. 

TATA Realty and Infrastructure, Zurich Airport, Ferrovial, MIAL, SREI Infrastructure, Samsung C&T, IL&FS, GMR Group, Shakat Aviation, Walnut Aviation, ESSEL Infrastructure and Vinci Concessions India had shown interest in the project development.

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