Mumbai airport has tied up with three public sector oil companies to develop a single integrated aviation fuel outlet for airlines at the Chhatrapati Shivaji International Airport.
Currently each of the three oil marketing companies IOCL, HPCL and BPCL, operates its own oil supply facility and these are scattered across the airport premises over land measuring 74,000 sq m.
According to a spokesperson for the Mumbai International Airport Ltd (MIAL), the joint venture with oil companies would make available at least 50 per cent of this land available for airport development purposes.
The proposed integrated oil fuel facility would be developed jointly by MIAL and the three oil companies and each company would have a 25 per cent stake. The new facility is expected to come up at the terminal 1 A at the airport, where HPCL and IOCL have facilities currently.
Sanjay Reddy, managing director, MIAL said in a press statement that it was an important milestone in the transformation of CSIA and MIAL looked forward to partnering with IOCL, HPCL and BPCL to create a modern and efficient aviation fuel facility to cater to the needs of airlines operation from CSIA.
In a memorandum signed yesterday MIAL agreed to set up a joint venture company with the three public sector oil marketing companies. The JV company, Mumbai Avaiation Fuel Farm Pvt Ltd, in which each of the entities would hold 25 per cent stake will set up an integrated aviation fuelling facility at the airport.
The three oil marketing companies sell aviation turbine fuel (ATF) and fix its price on a mutually agreed common formula. The joint venture would develop the integrated facility at the site of the existing IOCL and HPCL facilities near terminal 1A. This would involve increase of tank volumes, linkage to hydrant systems that supply fuel at the hydrant pits of aircraft parking stands, according to an MIAL statement.