Larson & Toubro is about to become a leading player in the airport construction segment. They have bagged the contract of Navi Mumbai International Airport. On 7th June 2019, the city and industrial development corporation (CIDCO) and the board of the city made the deal official.
Larsen and Toubro is a major technology, manufacturing, constructing, financial and engineering composite with global operations. In over 30 countries, L&T is providing the solution to their customer’s critical needs in Power, Defence, Infrastructure and Hydrocarbon sectors.
L&T has its operations in sectors which have a huge impact on the economy. Over 8 decades they have retained their rank with world-class quality and customer-focused approach. Unbeaten expertise in technology, construction, infrastructure projects have assisted them in achieving their targets.
Every aspect of their business revolves high standards and professionalism. They have the presence of their manufacturing unit in eight countries.
Construction contractor and Engineering Procurement Construction (EPC) for the Navi Mumbai airport was open for application in August’18. Though the contract was allocated to L&T, the contract details are yet to be specified.
L&T confirmed their participation but has not made a public statement on the granularity of the contract. Currently, L&T is working on the airport expansion projects at Delhi, Hyderabad and Bengaluru airports.
Navi Mumbai airport is a victim to delays in financial and cost augmentation issues which are related to environment and land acquisition. The airport initially planned to handle 10 million passengers. As per the revised, they will be handling 20 million passengers.
The first phase cost is secured at over Rs.14,000 crore. Most of it is funds are raised through equity investment and Rs. 10,200 crore long-term debt. By mid-2020 airport will be ready as per the state. As per the reports of CRISIL operation is expected to start in 2023.
Challenges faced in constructing the airport
The first part of the contractor is to raise the level of the ground by 8.5 meters. Before the construction of runaway and infrastructure, they need to get done with it. The contract covers airfield works, including runaway apron, construction of the terminal, cut and fill works, ancillary building, and multi-level car park.
The project was started in June 2017. Reclaiming marsh, flattering a hillock and river diverting were included in it, and land level has been increased to 5.5 meters. the channel around the airport has been widened to 60 meters. Ulwe river is affecting the airport project, therefore, they try to divert which will take around a week. while other underground power cables work would be completed by December.
Most of the villagers have been shifted due to the project work as most of them get affected because of it, and rest will evacuate by June end.
This project impacted 2600 families and ten villages. Those who have lost their lands, CIDCO offered plots to them with compensation of 22 % developed plots.