Mumbai International Airport has awarded a US$1.4 billion contract to engineering and construction company Larsen & Toubro as part of its modernisation programme.
Under the contract, Larsen will build a new passenger terminal and expand some existing facilities, such as taxiways, access roads and a multi-storey car park.
Mumbai International operates India's busiest airport - the Chhatrapati Shivaji International Airport in the financial capital of Mumbai.
It is a joint venture between a consortium formed by India's GVK Power & Infrastructure, Airports South Africa and state-run Airports Authority of India.
One of the main operating difficulties faced by Indian carriers is the country's buckling aviation infrastructure.
State-run Airports Authority of India projects that by end-2010, total passenger traffic - both domestic and international - at the country's airports will be nearly 110 million from an estimated 76 million passengers this year.
India's aging aviation facilities are already unable to cope with the aviation boom that began in 2004 and the under-capacity has led to frequent delays and higher operating costs for airlines.
Airports, which were designed to handle up to 200 flights every day, now handle about 800 daily flights.
The technology hubs of Bangalore, Hyderabad and Chennai experience congestion every night, with planes often forced to circle for up to an hour while waiting for a landing slot.
The larger airports of New Delhi and Mumbai suffer even worse overcrowding, with landing delays common during morning and evening peak hours.
Meanwhile, the contract to build access roads to Mumbai's international airport will be awarded by November end.
The four km elevated six-lane access road to the highways that connect the western and eastern suburbs of the city was valued at $89 million.
Sanjay Reddy, managing director of Mumbai International Airport said bids have been received from Gammon India and Larsen & Toubro.
The project will be jointly awarded by state body Mumbai Metropolitan Region Development Authority and MIAL.
MIAL is a consortium of GVK Power & Infrastructure, state-run Airports Authority of India and Airports Company South Africa and Bidvest Group.
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Source: cargonewsasia
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