With the stage all set for the commissioning of the Rs 12,500-crore T2 terminal at the Chhatrapati Shivaji International Airport on Friday, GVK Power and Infrastructure (GVKPIL) is working out business plans for the next phase of growth in the airports business. This includes setting up of the GVK Skycity (retail space) in the Mumbai airport and expansion of the Bangalore airport with an investment of R12,000 crore in the next five years.
GVK Group chairman GVK Reddy said, With the experience of Mumbai and Bangalore airports, we will now be consolidating our airport business both in India and overseas.
Interacting with newspersons on the eve of inauguration of the airport, he said that the immediate focus is on commissioning the operations in the T2 terminal within four weeks.
Thereafter, as we stabilise the operations in the new terminal, we get into finalising plans for setting up of GVK Skycity. The tenders for development of GVK Skycity have been called for and we are seeing good response. We expect to finalise them within three to four weeks. This enables us to part monetise some of the assets as per the contractual obligations, he said. Both Mumbai and Bangalore are doing well the latter will see an investment of close to R10,000-12,000 crore in next five years, he said.
While the current capacity in the Mumbai airport helps to handle around 35 million passengers, it will go up to 42-45 million with the new terminal. In the case of Bangalore airport, it currently handles 13 million passengers, which will initially be expanded to 20 million and later to handle 35-40 million within three years with an outlay of R12,000 crore.
Meanwhile, Reddy said that the company has plans to divest stake in the airports vertical. With the completion of both Bangalore airport expansion and Mumbai T2 terminal, it now paves way for us to bring down the debt levels. Several companies are in talks for acquiring a stake and we hope to conclude the process in the next few months, Reddy said.
When asked about bidding for other airports in the country, Reddy said that they have established themselves by executing and handling two of the best airports in the country and now they are looking at bidding for at least two of them when they come up for the process.
On Navi Mumbai airport bid process, he said that GVK has the first right of refusal