India-based GVK group has announced plans to invest Rs85bn ($1.19bn) in the construction of the first phase of Navi Mumbai International Airport in the Indian state of Maharashtra.

Navi Mumbai International Airport (NMIA) is a greenfield international airport, which will be located on the National Highway (NH) 4B near Panvel, approximately 35km from Mumbai’s existing Chhatrapati Shivaji International Airport (CSIA).

NMIA is a public-private partnership project, of which 74% is owned by GVK. City and Industrial Development Corporation of Maharashtra (CIDCO) owns the remaining 26%.

At an annual general meeting, GVK MD and chairman GVK Reddy said: “In the first phase, it is going to be about Rs8500 crore. It goes in phases.

“It will be 10 million passengers (in the first phase). Maybe by spending another Rs2,500 crore or Rs3,000 crore, another 20 million can go ahead. The project is on track and going on well.”

The concession agreement for the airport was signed between NMIA and CIDCO in January 2018.

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GVK Airport Developers informed that Yes Bank will be lead bank and mandate lead arranger for Phase 1 and 2 of the project.

The initial concession period will be maintained for 30 years from the date of appointment, which can be extended by another ten years.

The airport facility will be capable of handling ten million passengers a year upon completion of the first phase, 25 million a year in the second phase and 45 and 60 million a year in the third and fourth phases respectively.

The project is expected to generate 142,000 direct and 200,000 indirect job opportunities.

Earlier this month, India-based diversified conglomerate L&T Construction secured a contract to build Navi Mumbai International Airport.

The contract was awarded by Navi Mumbai International Airport Private Limited (NMIAPL), a subsidiary of the GVK group, which secured a deal to construct the airport in 2017.

In February last year, Indian Prime Minister Narendra Modi signalled the start of NMIA’s construction.