To modernize the Mumbai airport; prominent Infrastructure and Power Developer firm GVK plans to monetize the real estate lands of the Mumbai international airport.

GVK plans to monetize Mumbai airport land with the aim to modernize it.

GVK Power & Infrastructure Ltd owned Mumbai International Airport Ltd (MIAL); a firm which is developing the Mumbai international airport now plans to monetize the allowed real estate land for monetizing.

While commenting on the issue, Mr. Isaac George Director of GVK Power, told that the initially GVK will monetize about 2.9 million sq. ft.  He added that the process will be initiated by the beginning of June this year. However, he did not reveal the details of the fund expected to be raised through monetization.

The monetization will be finalized only once it gets the approval of Maharashtra Chief Minister,who has already approved the plan as the chairman of Mumbai Metropolitan Regional Development Authority (MMRDA).

Maharashtra chief minister will have to sign and approve the plan as the head of the state as well. Mr. George said that GVK expects to reap the benefits from the monetization in the next financial year.

GVK will modernize Mumbai airport after monetizing the allowed real estate land of the Mumbai airport.

GVK has been allowed to monetize around 10% (about 198 acre) of the Mumbai airport land. The firm is allowed to do so with an objective to raise fund to finish up the development of the airport.

GVK Power’s revenues fell by 12% on year -on -year basis and reached at 648.68 Cr. The loss of the firm also got broadened to Rs.57 Cr from the last year’s Rs.14.50 Cr. GVK’s loss in the second quarter was Rs.43.66 Cr.

Mr. George said that the loss of the company is due to the non-availability of gas for three of their power projects and high interest charges. In Andhra Pradesh GVK operates three gas-based power projects viz. Jegurupadu-I, Jegurupadu-II and Gautami.

The total capacity of these three power plants is around 908 megawatt. While Jegurupadu-I relies on GAIL for gas supply, the remaining two depends on Reliance.