GMR Airports to develop cargo city at Delhi airport

New Delhi: GMR Airports Ltd will be developing a cargo city spread over 50.5 acres of land at the Delhi airport.

The Indira Gandhi International Airport (IGIA) in the national capital is the country's largest airport and is operated by the Delhi International Airport Ltd (DIAL), which is a subsidiary of GMR Airports.

According to a regulatory filing, the cargo city project involves developing state-of-the-art cargo and logistics facilities over a total of 50.5 acres land within the IGIA, which includes a 10-acre optional land parcel that may be taken up in the future.


GMR Airports has "emerged as the selected bidder to finance, design, develop, construct, operate, manage and maintain the cargo city at the Indira Gandhi International Airport, New Delhi (project) for an initial period of up to year 2036, which may further be extended by 30 additional years," the filing made on Wednesday said.

In this regard, GMR Airports has received a Letter of Intent to Award (LOIA) the project from DIAL.

"The project is based on the revenue share payment model to DIAL which would be ascertained based on the revenue from cargo city business on year on year basis with a minimum monthly guarantee payable by the company to DIAL, for an initial period of up to year 2036 amounting to an estimated aggregate amount of Rs 415.74 crore," the filing said.

The filing also said the transaction is a related party transaction on arms' length basis and necessary approvals were duly obtained in accordance with Sebi Listing Regulations and Companies Act, 2013.

DIAL is a consortium led by the GMR Group.