MIAL strikes major land agreement with oil firms
Mumbai   08-Oct-2010

In a huge boost to airport modernisation, Mumbai International Airport Limited (MIAL) has succeeded in unlocking land valued around Rs 275-crore to Rs 300-crore in and around airports' premises.

MIAL has struck an agreement with IndianOil (IOCL), Bharat Petroleum Corporation Limited (BPCL) and Hindustan Petroleum Corporation Limited (HPCL), which supply aviation turbine fuel, to develop an integrated fuelling facility at a single location.

Currently, fuelling facilities are spread over around 18 acres across the domestic termial, international airport, and the old airport at Kalina.

These facilities will be shifted to an existing fuelling point near 1A terminal at the domestic airport. Sources say around 11 acres will be freed in the process.

Confirming the development, a spokesperson from MIAL said, “The idea is to increase efficiency.

The land now available will be used for airport modernisation. Since this land was already with us, there is no question of its commercial valuation.”

Interestingly, early this year, MIAL had announced plans for monetising around 200 acres of land in and around the airport over the next 10 years.

Around eight lakh sq feet of this, according to sources, is to be sub-leased in the first phase. This is for creating a hospitality district comprising star-rated hotels and malls.

Land for this is being identified within five-km radius of the airport.

MIAL spokesperson insisted that the land freed through the joint venture with oil companies will be used only for expansion purposes, primarily as parking area for aircraft, apart from apron and a maintenance facility.

The joint venture

The Memorandum of Understanding signed with three oil companies envisages the formation of joint venture company called Mumbai Aviation Fuel Farm Facility Private Limited.

MIAL, IOCL, HPCL and BPCL will be equal partners in the company, with each having 25 per cent stake. The company will develop an integrated facility at the site of the existing IOCL and HPCL facilities near terminal 1A.

It will upgrade facilities, increase tankage and link it to the hydrant systems that supply fuel at the pits of the aircraft parking stands.