GMR Infra, GVK Power dip on abolition of airport development fee

GMR Infrastructure and GVK Power and Infrastructure are trading lower by over 3% each after the civil aviation ministry on Tuesday ordered abolition of airport development fee at Mumbai and Delhi airports.

“Civil Aviation Minister Ajit Singh has directed Airports Authority of India (AAI) to infuse more equity in Mumbai International Airport (MIAL) and Delhi International Airport (DIAL) with the objective of abolishing Airport Development Fee (ADF) at Mumbai and Delhi Airports and accordingly submits its proposals to Airports Economic Regulatory Authority (AERA),” the report suggests.

MIAL is a public-private-partnership joint venture between GVK Group, Bid Services Division (Mauritius) (BSDM), Airports Company South Africa (ACSA) Global and Airports Authority of India (AAI), while DIAL is a joint venture consortium of GMR Group (54% stake), AAI (26% stake), Fraport & Eraman Malaysia (10% stake each).

GMR Infrastructure is trading lower by 4% at Rs 22.30 on the NSE. The stock hit a low of Rs 21.55 after opening at Rs 23.25. GVK Power and Infrastructure has dipped by 5% at Rs 13.20, saw a combined 16.96 million shares changing hands on the counter so far on both the exchanges.