GMR wins privatisation case to operate India’s Nagpur Airport
Join Our Newsletter - Get important industry news and analysis sent to your inbox – sign up to our e-Newsletter here
X

GMR wins privatisation case to operate India’s Nagpur Airport

19 Aug 2021 (Last Updated August 19th, 2021 11:52)

Mihan has been instructed to sign a concession agreement with the group in six weeks.

GMR Infrastructure subsidiary GMR Airports has reportedly won the rights to operate Dr Babasaheb Ambedkar International Airport in Nagpur, Maharashtra, India.

This comes after the Bombay High Court issued a ruling in favour of the GMR in a legal dispute against the Mihan India joint venture (JV).

Mihan’s March 2020 order to withdraw the award letter issued to GMR Group was set aside by the Nagpur bench of Bombay High Court.

In addition, Mihan India has been ordered to sign a concession agreement with the group in a span of six weeks.

According to sources, GMR Group is planning to invest more than $162.16m (Rs12bn) for the construction of a new integrated terminal at the airport.

In October 2018, the group emerged as the highest bidder for the development, operations and management of Nagpur Airport for a period of 30 years.

In post-bid negotiations, it agreed to share more than 14% of gross revenue, with a holding of a 74% stake in the project.

In May 2020, Mihan terminated the contract for the development of Nagpur Airport awarded to the group.

Thereafter, GMR Group moved to the Bombay High Court after the cancellation of the award.

Responding to the petition, the JV stated that it never allotted an award letter and March 2020 order was in connection with the acceptance of bids.

It added that the allocation of the award would be subject to central government approval which was pending at that time.

Comprising Maharashtra Airport Development Company and Airport Authority of India, Mihan India commenced the request for proposal (RFP) procedure to privatise the airport in March 2018.

The GMR Group currently runs Delhi and Hyderabad airports and is involved in the construction of greenfield airports in Goa and Bhogapuram, Andhra Pradesh.