State Bank of India becomes lead financier of Navi Mumbai Airport project: Report
The country's largest lender will contribute around Rs 4,500 crore of the total funding required for the Rs 16,000-crore airport project.
January 29, 2020 / 04:29 PM IST
The State Bank of India (SBI) has become the lead financier for the first two phases of the Navi Mumbai Airport project, sources told The Economic Times.
The report noted that the country's largest lender will replace Yes Bank as the lead financier for the project. It also noted that Yes Bank has been dealing with several liquidity issues. It will contribute around Rs 4,500 crore of the total funding required for the airport project, which stands at Rs 16,000-crore.
The construction of the Navi Mumbai Airport project will be undertaken by a consortium led by GVK Power and Infra, which is also the group that currently runs the Mumbai airport.
Moneycontrol could not independently verify the report.
As per the report, Asian Infrastructure Investment Bank (AIIB) of China was also approached for funding. Also, some domestic players could also join the fray of lenders.
The report mentioned that while the development is positive on the financing front, the delay in funding for the project is expected to push its completion behind by at least two years. While construction was expected to begin in October, L&T, the company that was given the Engineering, Procurement and Construction (EPC) for the project, has not got the letter of approval to begin work.
Construction of the Navi Mumbai Airport project first got approval from the state government in 2008, and it is to be established on 1,160 hectares of land in phases.