Expect nod for realty project soon: Sanjay Reddy

GVK has been banking on monetisation of land around Mumbai airport to fund its airport project

 

GVK group was awaiting the government’s approval for its real estate development project around the Mumbai airport, group vice-chairman Sanjay Reddy said on Monday.

The GVK group-run Mumbai International Airport Limited (MIAL) is modernising the airport in Mumbai an estimated cost of about Rs 12,380 crore. GVK has been banking on monetisation of land around the airport to fund its airport project. It hopes to earn Rs 1,000 crore through commercial development through the next three years.

“We hope to get approval (for developing real estate) soon. The clearance is in the final stages,” Reddy told the media on the sidelines of the Routes Asia conference.

MIAL’s new integrated terminal would be opened in the last quarter of this year. Operational readiness trials for this would be completed by September, Reddy said.

The Airport Economic Regulatory Authority (AERA) had approved a 150 per cent rise in rates at the Mumbai airport, well below the 880 per cent rise sought by GVK. Though Reddy didn’t clarify whether the group would challenge AERA’s order, sources indicated the group was planning to file an appeal.

“The T2 will be a game changer for the GVK group. It will be a dream true for us and we would like people to see we have delivered on our promise,” Reddy said, adding the terminal would also help increase revenue through enhanced retail and commercial opportunities.

With the fate of the Navi Mumbai airport uncertain, MIAL is working with airlines, air traffic controllers and the Directorate General of Civil Aviation to increase the capacity of the Mumbai airport by reducing aircraft occupancy on runways. “We would like to push the hourly aircraft movement beyond 50,” Reddy said.