INDIA BUSINESS WORLD - OCTOBER 21st - NOVEMBER 15th
- 2007
L&T BAGS RS 5KCR MUMBAI AIRPORT UPDATE
Engineering and Construction major Larsen & Toubro has bagged the master contract for the redevelopment of the Mumbai airport, the largest airport hub in the country, sources close to the development said. The contract is for the reconstruction of the domestic and international airport building as well as the air-side redevelopment of the Chatrapati Shivaji International Airport (CSIA). This includes the runway and a new integrated cargo complex among others. The total value of the deal is estimated to be worth over Rs 5,000 crore and a formal agreement is expected to be signed later this week.
The project to redevelop the airport section by section, even as it continues operations, is slated to be among the most complex infrastructure projects undertaken in the world.
L&T is expected to carry out most of the work on its own, except for some technical contracts like baggage handling, electrical and certain mechanical work that may be sub-contracted to domain experts. Mumbai International Airport Limited (MIAL), the company that operates the airport has yet to finalise plans for the other major contract for the city side redevelopment, which will include commercial development like hotels, convention centres and a recreation area planned around the Sahar airport. Contracts for this are expected to be given out over the next few years.
Taking forward the process of reshaping the Mumbai airport, MIAL has just last week awarded another key contract, for the rehabilitation of slums to Housing Development Infrastructure Limited (HDIL). CSIA is a severely land constrained airport with about 276 acres of airport land under slums. MIAL has been unable to reclaim the encroached land in the 18 months since it took control of the project.
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