GMR plans aircraft parts assembly plant

NEW DELHI: Bangalore-based infrastructure developer GMR is in talks with aircraft component manufacturers such as Honeywell and Safran to set up a components assembly plant in the country.

The company plans to invest $60 million for the proposed JV that will assemble airplane components at the aviation SEZ in Hyderabad, a GMR Group official said. GMR Hyderabad International Airport (GHIAL) vice-president of planning and strategic initiatives D Ravindran confirmed the development. ���We have received proposals from several avionics manufacturers and currently evaluating them,��� he said.

���The equity structure of the new company is yet to be finalised. However, it will depend upon partner���s proposal,��� he said. GHIAL, a majority-owned subsidiary of GMR Group, has already formed a JV with MAS Aerospace Engineering of Malaysia to set up a facility for airframe maintenance, repair and overhaul (MRO) at the SEZ. The two are equal partners in the company.

GHIAL has set up two airport-based SEZs in Hyderabad, where it plans to undertake high-end aero engineering activities. About 250 acres of land, adjacent to the new Hyderabad airfield, have been designated as SEZs. GMR Group holds 63% in the airport company. While the Andhra Pradesh government and the Airports Authority of India (AAI) own 13% each in GHIAL, the remaining 11% is held by Malaysia Airports Holdings Berhad (MAHB).

Hyderabad is fast emerging as an aviation hub. The average traffic movement at the Hyderabad airport is about 218 flights a day. The airport handles nearly 18,000 passengers on a daily basis. ���Going forward, international as well as domestic carriers would make Hyderabad their hub in South-East Asia.

The new Hyderabad airport has several advantages over other airports in the region. While the passenger-handling capacity is in excess of the current demand, the state government provides very friendly business environment,��� Mr Ravindran said.