GMR to raise Rs 718 cr for Hyd airport expansion

GMR Hyderabad International Airport Ltd (GHIAL), which is developing a greenfield airport near Hyderabad, executed financial agreements on Friday for raising Rs 718 crore from Abu Dhabi Commercial Bank, Andhra Bank and Vijaya Bank.

The loans are being raised for creation of additional facilities, common fuel farm and business hotel in the airport. The extra facilities being created include more aircraft parking stands, rapid exit taxiways, full length parallel taxiway, additional office space for airlines, extra cargo terminal space, additional car parking, extra immigration desks, self-check-in-kiosks and bus gate lounges. GHIAL is a joint venture company promoted by GMR Infrastructure, Malaysian Airports Holding Berhad, Airports Authority of India and Andhra Pradesh government.

While the rupee term loans of Rs 200 crore are being extended by Andhra Bank and Vijaya Bank, Abu Dhabi Commercial Bank would extend the remaining Rs 518 crore in dollars in the form of external commercial borrowing (ECB). The ECB has a repayment moratorium of two years from the date of airport's commercial operations and a structured payment pattern spread over 14 years thereafter.

GMR had initially planned to handle 7 million passengers but decided to increase the capacity to 12 million passengers per annum keeping in view the growth in air traffic from Hyderabad in the last few years. As a result, the total project cost has gone up to Rs 2,478 crore from the earlier estimated figure of Rs 1,760 crore.

GHIAL chief operating officer, T Srinagesh, said the work was progressing at a rapid pace and the airport would take-off as per schedule in March 2008.