GVK to exercise first right for Navi Mumbai airport

Hyderabad, Dec. 30:   

 

GVK Power & Infrastructure Ltd is set to commission its new Mumbai International airport terminal early next month. 

Developed with an outlay of Rs 12,360 crore, it can handle up to 40-45 million passengers per annum. It is likely to be inaugurated by Prime Minister Manmohan Singh on January 10. Initially, the international airport will be commissioned followed by the domestic terminal. 

The diversified infrastructure company based in Hyderabad is also keen to exercise its Right of First Refusal (RoFR) when the new Navi Mumbai airport comes up for the bidding process and development. 

If the bid is within 10 per cent of the best bid, GVK will be allowed to match that bid. Since the company is already engaged in managing airports at Bangalore, Mumbai and Indonesia, it plans to exercise this right. 

Right of refusal

Isaac A George, Chief Financial Officer of GVK, told Business Line, “We will certainly take part in the development of the Navi Mumbai airport when it comes up for offer. GVK has first right of refusal and we will exercise our right to implement it.” 

“The commissioning of the new airport in Mumbai will add to the convenience of passengers with top quality amenities. We have had to cross several hurdles to implement the large project. The challenges in developing a new airport in limited land are far more than in, say, a greenfield airport on a 5,000-acre site,” he explained. 

The company is also in the process of monetising some land along with built-up area and expects to complete the process by January-end. 

Referring to the company’s other businesses such as power and road sectors, the CFO said that several company projects will get commissioned in 2014-2015, adding to significant cash flows. This includes a power plant at Goindwal Sahib in Punjab, Alaknanda hydel project and Tokisud coal mine. They would all be commissioned in the first quarter of next fiscal. 

The company, which recently inaugurated the new terminal at the Bangalore airport, which has been renamed as Kempegowda airport, is also at advanced stage of concluding stake sale transaction for its airport vertical. “We expect this process also to get concluded early next year,” he said.