Tuesday, June 25, 2013

GMR Hyderabad International Airport To Divest Fuel Farm Biz

GMR Hyderabad International Airport Limited is planning to divest majority stake in its Fuel Farm business, Livemint states. The airport will transfer its fuel farm into a fully owned SPV that will divest a 74% stake in it.
The SPV will have a 25-year concession from GHIAL and the investor buying a 74% stake in it may be allowed to charge from aviation turbine fuel suppliers an infrastructure fee.
The company has appointed KPMG to advise it on hiving off the fuel farm business.
The divestment could increase the cost of fuel, but may help the airport company clean up its books as it seeks the airport regulator’s approval for raising tariffs.
In 2006, GHIAL set up an open access model fuel farm consisting of three storage tanks each with a capacity of 4,500 kilolitres of aviation turbine fuel (ATF) and hydrant at the new airport premises for supply of fuel to aircrafts.
25/06/13 Charmi Gutka/Deal Curry