GVK seals finance for Mumbai airport

Hyderabad: A consortium of banks has agreed in principle to lend up to Rs 5,000 crore to the Mumbai International Airport Pvt Ltd (MIAPL), which won the bid for modernising and expanding the Chhatrapati Shivaji International Airport.
However, the company is unlikely to avail the entire funding, given its limited requirements in the initial phase.
MIAPL will spend about Rs 3,000 crore to bring the airport to international standards within the next three years, its new chairman G V Krishna Reddy told DNA. The company will invest an additional Rs 5,000 crore in the second phase.
MIAPL is a joint venture company that recently became a majority stakeholder in the Mumbai airport.
The consortium comprises the Hyderabad based GVK group (with an equity of 37%) and South African companies Airports Company South Africa Ltd (with 10%) and The Bidvest Group Ltd (27% equity participation). The Airport Authority of India will retain 26% holding in the company.
26/04/06 C Chitti Pantulu/Daily News & Analysis

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