Dial land lease plan to clear debt

New Delhi: The Delhi International Airport Ltd (DIAL) consortium hopes to become debt-free after leasing out land at the airport to private parties for real estate development.
“We have a debt of Rs 5,000 crore on our books and will lease out land to clean our debt,” said a GMR executive, who did not want to be identified.
“After the airport (terminal being developed) opens and various concerned parties come to us with offers, we will decide the rates,” the executive added.
DIAL can lease around 250 acres to private players to build hotels and restaurants and develop a hospitality district.
A Mumbai-based banker, who was involved in GMR Infrastructure’s (head of the consortium) fund-raising through a qualified institutional placement and did not want to be identified, said: “DIAL plans to sell the land in the hospitality district by September, after the airport terminal becomes operational in July.”
DIAL had earlier planned to lease out 45 acres to be commercially developed in the first phase. It has so far leased out 21.8 acres to successful bidders.
18/05/10 Mihir Mishra/Business Standard

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Categories: Airports May 2010