GMR raises Rs2,600cr loan from Tata Capital for Nagpur airport expansion and takeover
1
2
3
Nagpur:
GMR Nagpur International Airport
Limited is raising a Rs2,600 crore loan from
Tata Capital
to partially fund its plans for the brownfield expansion of
Dr Babasaheb Ambedkar International Airport
here. The company is poised to take over Nagpur airport for operations under a concession agreement from the current operator, Mihan India Limited (MIL).
A final approval for Airports Authority of India (AAI) to transfer airport land to the company is awaited.
The total project cost is estimated at Rs3,275 crore, according to a note accessed by TOI. A part of this will come from the loan provided by Tata Capital, said sources involved in the development. The funds will be deployed in upgrading, developing, and operating the airport. This capital expenditure will cover areas like civil, mechanical, and electrical works, terminal building, cargo facilities, and runway, apart from other assets necessary for the expansion of the airport under the concession agreement, according to the note.
A wholly owned subsidiary of GMR Airport Limited, the company, GMR Nagpur, was formed close to six years ago to handle operations for the city airport. According to the GMR Group's website, the company plans to increase the airport's capacity to handle 30 million passengers a year. The first phase will involve building a new terminal that would cater to 3 million passengers a year, apart from a facility to handle 20,000 metric tonnes of cargo.
A new air traffic control tower and comprehensive airside infrastructure are also planned.
Now, as GMR Group is ready with the finance for the airport project, the formal takeover of the airport is pending. GMR was expected to step in by the first week of May. However, the process has been delayed. It is learnt that approval from the Union cabinet is needed for the transfer of the airport land to GMR from AAI. The land on which the airport stands comes under AAI.
The peripheral areas towards Shivangaon and other villages belong to Maharashtra Airport Development Company (MADC).
MIL is a joint venture between MADC and AAI. The company was formed in 2009. Now, GMR will come in as the developer under a concession agreement. GMR has completed the procedure from its side to take over the airport, said sources. Legal assistance for the loan deal was provided by M/s Cyril Amarchand Mangaldas (CAM).
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
New Indian Express
14 hours ago
- New Indian Express
Adani Airports raises 750 million dollars to refinance debt, expand capacity
MUMBAI: Adani Airports Holdings has raised 750 million dollars through External Commercial Borrowings (ECB) from a consortium of international banks. The funds will be used to refinance existing debt, invest in infrastructure upgrades, and expand capacity at six airports—Ahmedabad, Lucknow, Mangaluru, Jaipur, Guwahati, and Thiruvananthapuram. The borrowed amount will also support the growth of non-aeronautical businesses, such as retail, food and beverage, duty-free, and other services across the airport network. The transaction was led by First Abu Dhabi Bank, Barclays PLC, and Standard Chartered Bank. Adani Airports Holdings, a subsidiary of Adani Enterprises and the country's largest private airport operator, served 94 million passengers in the financial year 2024–25. The company's total handling capacity currently stands at 110 million passengers, and it plans to triple this figure to 300 million passengers per year by 2040 through phased expansion. As part of this growth plan, the Navi Mumbai International Airport is expected to become operational soon. It will initially handle 20 million passengers, with capacity set to increase to 90 million annually in later phases. 'AAHL is well on its path to deliver exceptional customer experiences, leveraging technology for seamless operations, and prioritizing sustainability and community engagement across its airport network,' said Arun Bansal, CEO of AAHL. Latham and Watkins LLP and Linklaters LLP acted as English law counsel for the deal, while Cyril Amarchand Mangaldas and TT&A served as Indian legal advisors.
Time of India
14 hours ago
- Time of India
AAI suspends land acquisition for Surat airport expansion
Surat: The Airports Authority of India (AAI) has asked the Surat collector to put in abeyance the process to acquire 25.33 acres of land to expand the Surat airport. The AAI and Gujarat govt had signed an MoU in Dec 2023, under which AAI proposed to expand the airport precinct and put in place the CAT-1 approach lighting system and an ASR-MSSR radar facility. Tired of too many ads? go ad free now Sources said AAI officials have told the collector's office they do not want the land. It is germane that Runway 22 is already displaced by 615m, due to alleged illegal constructions affecting the aircraft funnel path. With no CAT-1 instrument landing system (ILS), safety concerns will persist. A senior Surat airport official, on condition of anonymity, told TOI: "We noticed there are no major diversions due to fog or smoke for which the CAT-1 lighting system would be needed. We do not have much fog like Delhi or Amritsar. We felt spending crores on the system was unnecessary as we don't have major issues. In the last year, only three flights were diverted due to fog. We thus asked the collector to put the land acquisition in abeyance. " Surat collectorate officials confirmed having received the request. "As AAI does not need the land anymore, we will not proceed with the acquisition process," said an official. The acquisition plan was referred to as the Surat Airport Expansion Project by AAI and the Gujarat govt's civil aviation department. A memorandum of understanding (MOU) for it had been signed in Dec 2023, agreeing to acquire land through a special land acquisition officer under the observation of the Surat collector. AAI had asked for 20.33 acres of land for the CAT-1 approach lighting system and five acres for the ASR and MSSR facility. Tired of too many ads? go ad free now A request for 25.33 acres was made by two letters written in April 2025 and May 2025. The AAI suddenly decided they did not want the land anymore. It was proposed that the 25.33 acres of land would be acquired from 20 owners, for which a budget of Rs 215 crore had been approved. With the CAT-1 and advanced radar project put on hold, aviation experts raised concerns about safety issues. An aviation expert said: "The CAT-I lighting system is vital for ensuring safe landings during low visibility conditions, especially in winters and monsoons. Its importance is amplified at Surat airport, where Runway 22 is already displaced by 615 metres due to obstacle limitations — a matter currently under litigation through a public interest litigation (PIL)." He added: "The airport regularly handles diverted flights from Mumbai, Ahmedabad and Vadodara in adverse weather. Additionally, fog in winter and industrial smoke from the Hazira-Sachin belt, along with the heavy monsoon rain, often reduce visibility below safe landing limits. With 24x7 operations and a high volume of landings on Runway 22, which is shortened by 615 metres due to the height obstacle issue, leaving merely 2291 metres, CAT I lighting would provide visual guidance to ensure safe and uninterrupted landings in low visibility. " ASR-MSSR is a modern radar system used at airports and by air traffic control for surveillance and navigation. ASR stands for Airport Surveillance Radar and MSSR stands for Monopulse Secondary Surveillance Radar.
India Gazette
2 days ago
- India Gazette
PM Modi increased Kerala's railway budget to Rs 3,042 crore: Railway Minister Ashwini Vaishnaw
New Delhi [India], June 3 (ANI): Prime Minister Narendra Modi-led Union government has increased Kerala's railway budget from an average of Rs 372 Crore (2009-14) to Rs 3,042 crore in the financial year 2025-26, Railway Minister Ashwini Vaishnaw said on Tuesday. 'PM Narendra Modi Ji has increased Kerala's railway budget from an average Rs372 Cr (2009-14) to Rs3,042 Cr in FY 2025-26. We are working on 3rd and 4th line from North to South Kerala, so that both passengers and cargo can move by rail,' Vaishnaw said in a post X. Vaishnaw said that he discussed key projects with Kerala Chief Minister Pinarayi Vijayan and sought his support for land acquisition, especially for Angamaly-Erumeli railway project and Road Over Bridges (ROB) and Road Under Bridges (RUB) being sanctioned. The Angamaly-Erumeli railway project, also known as Sabari rail project was first proposed in the Railway Budget of 1997-98. The land acquisition for the project was completed too. The Kerala CM has earlier said that the expansion of the Sabari rail project would provide a significant boost to Kerala's development, while also suggesting that it could be extended in the future to connect Vizhinjam. In December, an official statement from the Kerala CM's office said that the project would be implemented in two phases with an expanded approach, with the state government requesting the Centre's approval, and 50 per cent of the cost of the project will be borne by the state government. The section's plan included the construction of two flyovers and two underpasses. However, land acquisition notifications have now been issued for the next 70 km. A letter from the Railways dated 26.09.2019 informed the state government that the project had been frozen, leading to a halt in further construction activities, including the flyovers. Although the project initially began with full funding from the Railways, on January 7, 2021, the Kerala Government conveyed to the Central Government its readiness to bear 50 per cent of the project cost, then estimated at Rs 2,815 crore, through Kerala Infrastructure Investment Fund Board (KIIFB). (ANI)
