Larsen & Toubro (L&T), one of the leading players in the airport construction segment, is set to win contract to build the Navi Mumbai International Airport. The board of City and Industrial Development Corporation (CIDCO), the planning authority, met recently to consider the contract.
A tender to select the Engineering Procurement and Construction (EPC) contractor was floated last August. A source said L&T has been chosen for the construction work. The contract size is not known and the award will take place following government approvals, it is learnt. “We are yet to award the EPC contract and will share an update in due course,” said a spokesperson of GVK, which is developing the Navi Mumbai airport.
An L&T spokesperson confirmed its participation in the bid but did not elaborate. L&T is the project contractor for ongoing expansion works at Bengaluru, Delhi, and Hyderabad airports.
Navi Mumbai airport has been plagued by delays and cost escalation over issues related to land acquisition and environment issues. The airport was being planned to handle 10 million passengers in the phase one, but the terminal will now be built to handle 20 million.
The first phase project cost is pegged at over ~14,000 crore and is being funded through equity investment and ~10,300-crore long-term debt. While the state hopes the airport will be ready by mid-2020, CRISIL in its report in May-end had said operations are expected to start in 2023.
