GVK mulls ways to monetise MIAL land

Hyderabad: Infrastructure major GVK Power and Infrastructure Ltd is looking at various options to unlock the real estate value in Mumbai International Airport Ltd (MIAL).
Despite having the contract to modernise the country’s busy airport, the company has only been busy with its development so far.
It has been given about 198 acres for development and part-financing of the development of the airport. This real property remains untouched and the company is now working on a strategy to modernise the property.
“There are various options being evolved. A lot of proposals too are being evaluated. Though it is a little far away, we are working on it,” Isaac Geroge, the company’s chief financial officer, told DNA.
The monetisation plan is likely to be finalized by 2011-12. According to the data available with the Airports Authority of India, about 22% of the country’s air traffic goes through the MIAL in addition to significant cargo traffic.
GVKPIL owns about 36.6% of the airport and has a dual role of developer and operator.
While the total airport is spread over 1,980 acres, about 10% of the airport area or 198 acres has been accorded to the company for commercial development to overcome the funding issues.
22/03/10 K V Ramana/Daily News & Analysis

To Read the News in full at Source, Click the Headline

Categories: Airports Mar 2010