GMR arm inks pact with Goa to develop, operate Mopa airport

GMR Airports Ltd, a subsidiary of GMR Infrastructure Ltd, has entered into a concession agreement with the Goa government for the development and operation of north Goa’s greenfield international airport at Mopa.

The agreement was signed by RV Sheshan, CEO, GMR Goa International Airport Ltd, and RK Srivastava, Chief Secretary of Goa, in the presence of Chief Minister Laxmikant Yashwant Parsekar.

40-year agreement As per the concession agreement, GMR will design, build, finance and operate the international airport for 40 years with extension option for another 20 years. The construction period for the first phase of the project is three years from the date of financial closure and is expected to be operational till mid-2020.

Srinivas Bommidala, Chairman-Airports, GMR Group, said in a statement: “We are excited about the project and the opportunity to partner with the Government of Goa. GMR Group has already delivered landmark airport assets for the Country. Delhi International Airport, which is the ‘Gateway of India’, is today ranked as the number one in the world in its category.”

Competitive bidding In August 2016, GMR won the Mopa project through international competitive bidding with Airports Authority of India emerging as the second highest bidder, followed by the Essel Infra-Incheon consortium.

The project will operate on hybrid till model with 30 per cent cross subsidy. The concession offers 232 acres of land for commercial city side development for a period of 60 years. GMR Airports has developed several airports in India and abroad, including the airports in Hyderabad, New Delhi, Turkey and has bid for another airport in Greece. GMR Infra shares closed the day at ₹12.68, up 0.24 per cent at BSE.