Six private infrastructure players including GMR and GVK are bidding for the stake in the shares of the Nagpur airport. On September 28th, Mihan India Limited (MIL), the current operator, opened bidding for privatisation of Nagpur airport. According to reports, GMR has quoted a higher amount than the others.
As part of the terms and conditions, the winning bidder will have to bare 74% equity for the development of Nagpur airport infrastructure – amounting to Rs 1,685 crore. Also, The winning bidder will act as strategic partner to MIL.
During the bidding process, a number of conditions were eased, according to a report. These include; increasing the timeline for constructing a second runway, reducing the time frame for city side real estate development.
Delaying the second runway construction will save the private partners approximately Rs 300 crore, while the city side real estate development will help unlock the real estate potential of the area around airport.
Image Credit – Airport Technology