Hyderabad, November 04: Infrastructure major GMR is all set to hive off its assets, create a holding company for its airport business and monetise its airport assets.
GM Rao, chairman of GMR Group, is on an over drive. After completing construction of the airport in Istanbul, he is now focusing on restructuring his business by hiving off the assets.
The company is scouting for private equity investments in its proposed holding company in charge of its airport assets.
Rao said, “We are working on a holding company and are also looking at monetising assets. Not only this, we are looking for PE investments in an airport holding company.”
Also, rising interest and depreciation costs at its airports are weighing heavy on the group’s profits and it is awaiting government approval to raise the user development fee at the Hyderabad airport to cover some of its losses.
Meanwhile, UDF is to rise to Rs 475 plus service tax from Rs 375 for domestic passengers and to Rs 2,800 plus taxes from Rs 1000 for international travellers.
“We do not have cash losses. It is mostly depreciation and interest loss. There is no cash loss at the Delhi airport. There are losses at the Hyderabad airport,” said, G M Rao.
However, G M Rao has earned the honour of being the first Indian corporate to have built an airport abroad.
Built at a cost of Rs 4,000 crore and a record time of 18 months, the new Istabul Sbiha Gokcen International airport will have a capacity to handle 25 million passengers.
Meanwhile, the losses at GMR’s airport projects are threatening to spoil the group’s success party. Unable to mop up money, GMR is eyeing people’s purses, planning to make them pay more every time they fly out of its Hyderabad airport.
-Agencies