Dinesh Kamath's news item 'Will Navi Mumbai International Airport Project become unviable?' that was published in Newsband

Will Navi Mumbai International Airport Project become unviable?

By Dinesh Kamath

NAVI MUMBAI: With lot of people in India traveling by airplanes today, there is certainly a need for greenfield airports and upgrading of existing ones. But it is found that there are a lot of hurdles in pursuing this goal. Land acquisition, environmental damage, feasibility, cost escalation etc. are the hurdles faced by people who wish to change things.

Navi Mumbai airport project was one of the first major announcements Prithviraj Chavan made after taking over the reins of Maharashtra. In November 2010, at a media briefing jointly addressed by Chavan, then environment minister Jairam Ramesh and then civil aviation minister Praful Patel, it was announced that the project had been given the necessary environment clearance and that it would be completed on a priority basis.

Two and a half years later, ground reality made Chavan admit that the project was stuck, thanks to land acquisition issues. And that the estimated cost had increased threefold.

Mumbai is badly in need of a second international airport. The Chhatrapati Shivaji International Airport often resembles a state transport bus terminus during peak hours. When conceived in 2005-06, the cost of the Navi Mumbai project was pegged at Rs.4,766 crore. Now the estimated cost has shot up to Rs.14,573 crore.

The project requires 2,072 hectares. Of this, 1,405 ha is required for the airport, and 245 for a mangrove park. The government owns 702 ha, and the remaining 1,370 is private property. CIDCO (City and Industrial Development Corporation of Maharashtra) has acquired 895 ha from private owners and it is in the process of acquiring the remaining 475 ha.

The construction of runways and other facilities will need 1,160 ha, but CIDCO is short of the target by 291 ha. Apparently, tendering cannot begin until this 291 ha is acquired.

People, especially farmers, affected by the project have organised themselves under JNPT-CIDCO Prakalpgrasta Sangharsh Samiti, which threatens to stall the acquisition of the crucial 291 ha, unless the government is willing to return 30 per cent developed land as compensation.

The action council, which has the backing of all political parties, has been fighting for rehabilitation and compensation issues of people whose land was acquired in other CIDCO projects as well.

CIDCO is willing to give only 12.5 per cent of the developed land. If they agree to give 30 per cent developed land, it will affect the project's viability and also have far-reaching consequences on other future projects.

People are disgruntled with CIDCO. First, CIDCO acquired land in the 1970s for the development of Navi Mumbai. The agency acquired 15,000 ha across 95 villages. People affected by that acquisition are still fighting for rehabilitation and compensation! They fear that same scenario would repeat. They are not opposed to the new airport, but want a solution to the issues related to earlier acquisitions and a solid compensation package for the current one.

The pending 291 ha is spread across 10 villages. Those who will lose land are demanding Rs.20 crore per ha. Market rate is more or less the same. In addition, they have also demanded jobs for the project-affected. People have become bitter, as even engineers among the second generation of project-affected families were not absorbed by CIDCO.

Till the recent past, two proposals were being mulled over. One was to offer project-affected families monetary compensation—Rs.3-5 crore per ha. The government was also considering setting aside jobs for the project-affected. Plan B was to give project-affected people 22.5 per cent of the developed land, instead of monetary compensation.

These people were hoping that the government would be sympathetic and CIDCO would change its approach towards rehabilitation.

But now it appears that CIDCO is frustrated and fears that Navi Mumbai international airport might become unviable due to delays, cost escalation. It has cautioned that project may have to be wound up or shifted elsewhere. The bargaining between PAPs and CIDCO just doesn’t seem to get over. PAPs revealed that they have been told by CIDCO to hurry up or else the airport project would either have to be wound up or be shifted to Chakan in Pune district or elsewhere in the state.

There is no official decision taken on this matter. But according to a source, CIDCO officials during their series of meetings with PAPs have told that the airport project would become unviable due to the cost escalation following prolonged delays.

CIDCO chairman Pramod Hindurao said, “All efforts are being made to reach at an early settlement with PAPs. The state chief minister Prithviraj Chavan is expected to soon meet PAPs.”

RC Gharat, negotiator for PAPs said PAPs want 35% of the developed land. CIDCO and state government have yet to give an official commitment in this regard. However, the state government and CIDCO have indicated that 22.5% of developed land can be provided to PAPs. Besides, CIDCO is prepared to develop a world class city for PAPs adjacent to the airport.