Plan to Monetize Mumbai Airport Land
GVK Power & Infrastructure Ltd, the owner of Mumbai International Airport Ltd (MIAL), has revealed its intention to monetize the allowed real estate land of the Mumbai international airport. This move is aimed at generating funds to modernize the airport.
GVK’s Monetization Strategy
Mr. Isaac George, Director of GVK Power, announced that the company will begin the monetization process covering about 2.9 million sq. ft. starting in June this year. Details regarding the expected funds were not disclosed.
Approval from Maharashtra Chief Minister
The monetization plan must gain approval from the Maharashtra Chief Minister, who serves as the chairman of the Mumbai Metropolitan Regional Development Authority (MMRDA). This dual approval requirement includes endorsement from both the state authority and the MMRDA.
Expected Timeline for Benefits
GVK anticipates reaping the benefits of this monetization effort in the upcoming financial year. The company has been permitted to monetize approximately 10% of the Mumbai airport land, amounting to around 198 acres. This initiative aims to raise funds to complete the airport’s development.
Financial Performance and Challenges
GVK Power’s revenues declined by 12% year-over-year, amounting to 648.68 Cr. The company's loss widened to Rs.57 Cr from Rs.14.50 Cr last year, with a second-quarter loss of Rs.43.66 Cr. Mr. George attributed these losses to the lack of gas supply for three power projects in Andhra Pradesh—Jegurupadu-I, Jegurupadu-II, and Gautami—as well as high interest charges.
Gas Supply Dependency
GVK's power projects in Andhra Pradesh rely on gas supplies from GAIL and Reliance. The total capacity of these three power plants stands at around 908 megawatts.
