Friday, March 08, 2019

GMR bid to develop & operate Nagpur airport cleared, says CM

Nagpur: GMR Airports Limited’s bid for development of Nagpur airport has been approved by the state government. Chief minister Devendra Fadnavis made this announcement during the inaugural function of first phase of Nagpur Metro on Thursday. The company is a subsidiary of GMR Infrastructure Limited.
With this, GMR will be given the contract to develop Nagpur airport by pumping in over Rs1,600 crore and operate it for a period of 30 years. The private investor will have to bring in new facilities like a terminal building and other assets. The idea behind roping in a private investor was to realize the original plan of developing Nagpur airport as an international passenger and air cargo hub.

Later, sources privy to the development told TOI that the decision was taken on Thursday by Mihan India Limited (MIL) board of directors. MIL is a joint venture between state’s Maharashtra Airport Development Company (MADC) and Airports Authority of India (AAI). It currently operates the Nagpur airport.

The GMR deal was first cleared by the AAI members in MIL board, who earlier had raised certain queries related to the tender acceptance. The queries were referred to the state government’s project monitoring and inspection committee (PMIC). After the issues were addressed, the matter was again referred to the AAI. After getting its approval, the MIL board also cleared the GMR bid.

The private partner will be acquiring 74% stake in MIL for share in revenue generated from the airport operations.
08/03/19 Shishir Arya/Times of India