GVK Power rallies on tariff hike demand

The company seeks 660% hike in aeronautical tariff and introduction of user development fee

GVK Power and Infrastructure has rallied 7.75% to Rs 14.73 on reports that the company controlled Mumbai International Airport sought hike in aeronautical tariffs.

Report sugests that the GVK Infrastructure and Power Ltd-controlled operator has asked permission from the regulator to increase tariffs by 660% and has also sought an introduction of a user development fee on passengers since the airport modernization project cost has nearly doubled to Rs 12,300 crore since it was privatized.

Aeronautical tariffs include parking, landing and navigation fees for airlines, besides passenger levies on fares.

The stock reacted positively to this development. the stock opened at Rs 13.80 and touched the intra-day high of Rs 14.75. As many as 2.7 million shares have alsready changed hands compared to its two-week average of 2.4 million shares.