From ET Realty
NEW DELHI: The Goa government will not hold any stake in the proposed greenfield airport in Goa but will have board representation, with veto powers, in the company that builds and runs it, civil aviation ministry officials have said.
This is departure from the practice of state government’s being part owners of the greenfield airports, such as those in Hyderabad and Bengaluru and one proposed one in Navi Mumbai. “So, the state gets the golden share in the project. Not fetching equity in the project means the state government will not have to put in any fund into the project,” a senior ministry official, who did not wish to be named, said, adding that the Goa airport will be the first airport project in the country where the state government will not be part owner.
Golden share in a company gives control of at least 51% voting rights, especially when held by government.
The new deadline for completion of the project has been set as end of 2019 – same as that for the Navi Mumbai project.
In another first, the building of an expressway between the airport and the city has also been included in the total project cost, which is estimated to be over Rs 3,000 crore.
The proposed new facility will operate along with the existing airport, which is owned by the Indian Navy and operated by the state-owned Airports Authority of India (AAI), the government had said in in June 2010 after local businesses opposed the plan to close the existing airport.
The proposed airport will also see AAI, for the first time, competing with private airport developers to bid for a greenfield project. “We have the brightest chance to fetch the airport project, as we already operate the existing airport in Goa,” said a senior AAI official.
AAI will be vying with about 15 large domestic and international firms that have shown interest in the proposed Goa airport.
ET had reported in October that companies such as Germany’s Hochtief Aktiengesellschaft, French firm Vinci Construction, South Korea’s Incheon International Airport and Malaysia Airport Holdings have expressed initial interest in the new airport, which is to be built in four phases.