Saturday, March 09, 2019

GMR agrees to share 14.49% with MIL

Nagpur: GMR Airports Limited, which has been awarded the contract to develop Nagpur airport, has agreed to shell out a higher share from the revenues as against the percentage it had bid when the offers were invited. At 14.49%, the share is more than double the rate that was originally bid by GMR.
GMR had bid to offer 5.73% of the revenues generated from airport operations to Mihan India Limited (MIL) — the current operator. The bid was considered to be too low as compared to the offers received in privatization contracts for other airports. The aspect was also reported by TOI.

GMR’s tender was approved by the MIL board on Friday and an announcement was made by the chief minister Devendra Fadnavis during the inauguration of Metro rail. After post-bid negotiations, the ratio has been taken to 14.49% which is around 2% more than what has been offered by the private investor for Navi Mumbai Airport. The deal for Navi Mumbai airport has been bagged by GVK, which had also bid for the Nagpur airport.

Suresh Kakani, chairman of Maharashtra Airport Development Company (MADC), told TOI that the chief minister and Union transport minister Nitin Gadkari bargained hard to increase the share. This helped in increasing the revenue by over double than what GMR had originally offered.
09/03/19 Shshir Arya/Times of India