News Detail

<p style="text-align:justify"><span style="color:#696969"><span style="font-size:11px"><span style="font-family:arial">GVK Power &amp; Infrastructure Ltd. is set to commission its new Mumbai International airport terminal early next month.&nbsp;</span></span></span><span style="color:rgb(105, 105, 105); font-family:arial; font-size:11px; line-height:1.6em">Developed with an outlay of INR 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.</span></p> <p style="text-align:justify"><span style="color:#696969"><span style="font-size:11px"><span style="font-family:arial">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.&nbsp;</span></span></span><span style="color:rgb(105, 105, 105); font-family:arial; font-size:11px; line-height:1.6em">If the bid is within 10 percent 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.</span></p> <p style="text-align:justify"><span style="color:#696969"><span style="font-size:11px"><span style="font-family:arial"><strong>Right of Refusal</strong></span></span></span><br /> <span style="color:rgb(105, 105, 105); font-family:arial; font-size:11px; line-height:1.6em">Isaac A George, Chief Financial Officer of GVK, told, &ldquo;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.&rdquo;&nbsp;</span><span style="color:rgb(105, 105, 105); font-family:arial; font-size:11px; line-height:1.6em">&ldquo;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,&rdquo; he explained.</span></p> <p style="text-align:justify"><span style="color:#696969"><span style="font-size:11px"><span style="font-family:arial">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.</span></span></span></p> <p style="text-align:justify"><span style="color:#696969"><span style="font-size:11px"><span style="font-family:arial">Referring to the company&rsquo;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.</span></span></span></p> <p style="text-align:justify"><span style="color:#696969"><span style="font-size:11px"><span style="font-family:arial">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. &ldquo;We expect this process also to get concluded early next year,&rdquo; he said.</span></span></span></p> <p style="text-align:justify"><span style="color:#696969"><span style="font-size:11px"><span style="font-family:arial">Source-On Request</span></span></span></p>