GMR Infra hopes to DIAL a solution in two weeks

Top officials of GMR Infrastructure have indicated that the impasse regarding raising Rs 2,750 crore for the modernisation of the New Delhi Airport would be resolved in two weeks.
Alternate funding plans are being worked out, which would allow for a combination of equity from DIAL's stake holders and deposits and rent from leasing of airport land to fund the modernisation plan.
Subba Rao Amarthaluru, CFO, corporate integration, GMR, said, "We have submitted a few alternate plans. The funding gap of Rs 2,750 will be met through equity or a combination of equity and monetisation of property. If we are able to raise more money through such monetisation, the additional equity put in by the DIAL stakeholders, would be diluted."
GMR officials say that, while the government had agreed to pump in money to the tune of Rs 715 crore to ensure that the project would adhere to deadlines, it later asked DIAL to explore options which would reduce the government burden. With the current development, the equity put in by the DIAL stakeholders could be refunded, depending on the funding formula approved.
Earlier AAI and the Ministry of Civil Aviation had reservations with DIAL's formula of raising Rs 2,750 crore purely through deposits from those who wanted to tap into real estate opportunities on airport land.
GMR holds a controlling stake in the project which also has Fraport, Airport Authority of India and Eraman Malaysia as the other stakeholders. The first phase of the airport is expected to be complete by March 2010, in time for the Commonwealth Games which is being hosted by Delhi.
22/05/08 Nirmal John/DNA MONEY/Sify

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Categories: Airports May 2008