GMR spending Rs 20,000 cr on airports' expansion and developing new ones

GMR Group is currently investing Rs 20,000 crore to expand the existing airports and developing new aerodromes, GM Rao, Chairman of the infra major has said.

"Airport Development and Construction: GMR Group has set benchmarks for the development of world-class Airport infrastructure... Your company is currently investing approximately Rs 20,000 crore to expand the existing Airports and develop new Airports," he said in the group's latest annual report.

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GMR's airport business comprises four operating airports- Indira Gandhi International Airport, Delhi, Rajiv Gandhi International Airport, Hyderabad, Bidar Airport at Karnataka and Mactan Cebu International Airport in the Philippines.

Further, two assets Greenfield Airports at Mopa, Goa, and Crete International Airport in Greece are under construction. The group has also signed the concession agreement for a Greenfield Bhogapuram International Airport in Andhra Pradesh in June 2020 and development works are currently in progress.

Currently, Delhi Airport is undergoing an expansion of its airside infrastructure and terminal capacity, to 100 million passengers annually. The entire Phase 3A expansion is now planned to be completed by June 2023, Rao said.

Further, to meet the anticipated funding needs of the expansion project and to repay the USD 289 million bond maturing in FY'21- 22, Delhi Airport raised USD 450 million in the form of overseas Green bonds.

The Hyderabad Airport has already commissioned four rapid exit taxiways, completed the rehabilitation works of the Main Runway in the first quarter of the current fiscal as part of its capital expansion works.

"GHIAL is well underway to complete its expansion to a capacity of 35 million passengers annually by September 2022," he said.

To meet the entire funding requirements of the expansion project, GHIAL raised 5-year bonds amounting to USD 300 million last fiscal.

Construction and development works at Goa Airport, resumed at site in Feb 2020 post the reaffirmation of environmental clearance to the Project by the Supreme Court. The airport is expected to be commissioned by August 2022.

The development works including earthworks are in progress at Bhogapuram International Airport, post signing the concession agreement with the AP Government for the Greenfield in June 2020, he added.