GVK on lookout for overseas airport projects
GVK Group, which is modernising and upgrading the Mumbai International Airport, is scanning foreign geographies for airport development opportunities.
By J Padmapriya, TNN |
BANGALORE: GVK Group, which is modernising and upgrading the Mumbai International Airport, is scanning foreign geographies for airport development opportunities. It���s looking at airports in Prague, St. Petersburg and Mexico and is evaluating the privatisation processes in these countries. Rival GMR Infrastructure, which has Delhi and Hyderbad airports in its kitty, has already made a first by bagging a contract to develop an airport in Istanbul. GVK group has a JV with Airports Company South Africa for modernising the Mumbai airport.
Industry observers say that some of these overseas airports will witness very aggressive bidding by global players. Incidentally, GMR too is on the lookout for airport development opportunities in Eastern and northern Europe. GMR���s most aggressive overseas foray was by winning the bid to renovate the Sabiha Gokcen airport in Istanbul that cost the group a concession fee of Rs 10,808 crore ($2.7 billion) to be payable to the local government over 20 years. GMR, which is looking at adding one more international airport project to its kitty in 2008, raised $1-billion through the QIP route for asset acquisitions and allocation of equity across its projects.
GVK chief finance officer Isaac George told ET, ���We are also looking at bidding for non-metro airports that will come up for modernisation in India. Our overseas airport development plans are very premature right now. We are evaluating opportunities.���
Apart from airport projects, GVK is also looking at bidding for deep water blocks for oil and gas exploration under NELP-VII round. The company, which has finalised its technical partner, may be looking at raising debt and tapping other financing structures to fund its new foray, if it happens to win some blocks.
Typically, there could an investment requirement of $200-$500 million per block over a 7-8 year horizon. GMR, which has a similar project mix as GVK, too is eyeing oil and gas exploration. In 2007-08, the company earned Rs 860 crore from Mumbai airport operations while its revenues from power stood at Rs 300 crore and highways at Rs 140 crore.
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