With the aim to modernize the Mumbai Airport, Infrastructure and Power Major GVK will modernize the real estate land of the Mumbai Airport.
Mumbai International Airport Ltd (MIAL): fully owned by GVK Power & Infrastructure Ltd, plans to monetize the real estate lands of the Mumbai international airport to modernize the airport.
GVK –owned MIAL hold the contract with Mumbai Airport Authority to modernize Mumbai Airport. However for modernizing and for raising sufficient fund for the purpose, Mumbai Airport Authority has permitted GVK to monetize around one tenth of total land (approximately 198 acres).
Mr. Isaac George, Director of GVK Power; commenting on the issue, told that initially GVK will monetize about 2.9 million sq. ft. He revealed that monetization will be begun in the first weeks of June. He held his finger on his lips when he was asked questions regarding the financial details.
However the monetization will be finalized only once it gets the approval of Maharashtra Chief Minister. Though the CM has already approved the plan as the chairman of Mumbai Metropolitan Regional Development Authority (MMRDA), he is yet to sign on the paper as the Chief Minister of the state. In Mr. George’s opinion the result of the plan will be made visible only in the next financial year.
GVK is a power and infrastructure major of India. However their revenues fell slightly last year to reach Rs.648.68 Cr. The fall is estimated to be of 12% on year-on-basis.
Currently GVK faced loss mainly due to the acute shortage of gas. The power major faced severe setback in their gas supply leaving their power plants half dead. Jegurupadu-I, Jegurupadu-II and Gautami are the three power plants of the firm in Andhra Pradesh.
Only Jegurupadu-I relies on GAIL for gas supply, while the other two depends on Reliance whose gas supply remained insufficient last year. This is one of the major setback for the firm ass their power plants are only partially functional now.
