Reliance Infrastructure Plans to Expand Airport Business

Mumbai: Reliance Infrastructure Ltd. aims to bid for new airport projects in India and plans to move into the aviation services business as well, in an effort to expand operations and boost revenue, a senior executive said Wednesday.
Possible projects on the company's radar include upcoming airports in Mumbai, Goa and Pune, the executive told Dow Jones Newswires.
Reliance Infrastructure, part of the diversified Anil Dhirubhai Ambani Group, generates and distributes power, and also builds roads and metro rail systems.
Demand is likely to grow, with the Indian government setting a goal of spending $514 billion on infrastructure in the five years through March 2012, and $1 trillion in the following five years.
Reliance Infrastructure now gets most of its revenue from its power distribution operations, but it expects its engineering, procurement and construction business--which builds airports, roads and bridges--to grow at a fast pace and account for a larger portion of total revenue than the nearly 12% chalked up in the three months through June 30.
In 2009, Reliance Infrastructure unit Reliance Airport Development Pvt. Ltd. received orders to develop five airports, with the work involving design, upgrades and maintenance for a period of 95 years.
Reliance Infrastructure said earlier that capacity at the five airports--at Baramati, Latur, Nanded, Osmanabad and Yavatmal in Maharashtra state--had risen fourfold, and that passenger numbers and commercial activity have increased as well.
08/09/10 Eric Yep/Wall Street Journal

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Categories: airports Sep 2010, New Sep 2010