Indira Gandhi International Airport

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In April 2006, Delhi International Airport (P) Ltd (DIAL) signed a 30 year concession contract with the Ministry of Civil Aviation, Government of India (GOI), to operate, upgrade and modernize the Indira Gandhi International Airport (IGIA) in New Delhi, the capital of India. The concession mandated DIAL to finance, design, operate, manage as well as expand the airport for a period of 30 years with an option to extend it by another 30 years. IGIA was being designed to have an ultimate capacity of 100 million passengers per annum (mppa). The concession was aimed to overcome the enormous capacity constraints faced by the capital’s airport and to upgrade the outdated facilities to enhance passenger comfort, and ensure more efficient airport operations. The concession also reflects GOI’s commitment to encourage private sector participation to expand India’s airport infrastructure. DIAL was a public private joint venture company comprising of India’s GMR Group (50.1%), Germany’s Fraport AG (10%), Malaysia Airports Holdings Berhad (10%), a private equity fund called India Development Fund (3.9%), and Government of India’s Airports Authority of India (26%). The GMR-Fraport consortium won the IGIA concession by offering to share 45.99% of the revenue with the government in an international competitive bidding (ICB) process conducted by the GOI. The other consortiums that participated in the ICB were: Reliance-ASA Mexico, DS Constructions- Munich Airport and Sterlite-Macquire-Airport de Paris. DIAL developed a master plan to expand IGIA’s passenger capacity from 16.5 mppa (2006) to 37 million by 2010 and eventually to 100 mppa. The salient features of the master plan were – •Integrated terminal for both domestic and international traffic by 2010 •Third runway that is 4,480 m long and capable of handling A380 sized aircraft by 2008. •High speed metro connectivity with city centre and a six -lane access road to airport from NH8. In addition to the master plan, DIAL took steps to improve existing airport infrastructure by adding new taxiways and improving passenger facilities (such as number of baggage X ray machines). The total investment for implementing the master plan was estimated at US$ 1.88 billion. DIAL tied up funds in the amount of US$ 0.88 billion from ICICI bank and Punjab National Bank. GMR Group raised additional funds for the project through an initial public offering held in July 2006. DIAL took over the operations and management of IGIA in May 2006. DIAL awarded the design and construction of the terminal, runway and associated works to India’s Larsen and Toubro in December 2006 for US$ 1.19 billion. January 2007: The project received clearance from Ministry of Environment and Forest (MoEF). February 2007: On 17 February 2007, foundation stone was laid for creating world-class infrastructure facility. March 2007: Delhi International Airport was in the process of preparing two new taxiways U and V which would facilitate faster runway clearance from runway 10 side towards the international terminal. May 2007: On 22 May 2007, Delhi International Airport Ltd., a subsidiary of GMR Infrastructure incorporated a company named as 'Delhi Aerotropolis Pvt. Ltd., as its 100 per cent subsidiary for commercial property development. June 2007: Delhi International Airport Ltd (DIAL), a subsidiary of GMR Infrastructure & a consortium mandated to modernise, manage and develop Indira Gandhi International Airport seeking expression of interest from potential Indian and international real estate investors to develop hospitality project at airport site. July 2007: Companies like DLF, Unitech, Emaar MGF, Starwood and Accord are in the race for commercial developmental rights of GMR Infrastructure's 250 acres of land in Delhi International Airport (DIAL). October 2007: Delhi International Airport (DIAL) shortlisted nine applicants of which four was considered to participate in a competitive bidding process to select a final list of developers, to develop 45 acres of commercial land near the international terminal. November 2007: Pratibha Industries in joint venture with Pratibha Pipes & Structurals bagged an order worth Rs.41.35 crore for construction/expansion of domestic arrival terminal of Indira Gandhi International Airport. The order was scheduled for completion within five months. 30 November 2007: Financial closure was likely to achieve by end-December 2007. December 2007: Delhi International Airport (DIAL) achieved financial closure for the modernisation and expansion of the project and signed the financing documents with its project lenders More than 69 per cent of the work on the runway and the associated taxiways was completed. February 2008: GMR decided to put on hold the controversial real estate project from the development of the project. In December 2007, Delhi International Airport (P) Ltd (DIAL) a Public Private Partnership Initiative mandated to modernize and restructure Indira Gandhi International Airport, New Delhi signed key financing documents with its project lenders for Rs. 3,650 Crore and foreign currency loan of USD 350 Million for modernization and expansion of Indira Gandhi International Airport, New Delhi. The total capital expenditure programme of the first Phase till year 2010 is estimated at about Rs. 8,900 Crore(2486 million at35.8 ruppes per dollar). This is expected to be funded by debt and equity in the ratio of 1.25:1 comprising equity and quasi equity of about Rs. 3,950 Crore (US$1104 million) and debt of Rs. 4,940 Crore (1380 million). The rupee component of the debt amounting to Rs. 3,650 Crore was raised with 17 year door-to-door tenor at an interest rate of 10.50% and ECB component of USD 350 Million was raised with a 13 year door-to-door tenor. The deal has been syndicated by ICICI Bank Ltd. The total requirement of debt has been financed by Canara Bank Rs.600 Crore, IIFCL Rs.500 Crore, Union Bank of India Rs.500 Crore, Oriental Bank of Commerce Rs.400 Crore, Central Bank of India Rs.400 Crore, Andhra Bank Rs.250 Crore, Vijaya Bank Rs.250 Crore, IDFC Rs.250 Crore, Bank of India Rs.250 Crore and Punjab National Bank Rs.250 Crore. Foreign currency loan of USD 350 Million has been financed by ICICI Bank, Singapore – USD 200 Million and Abu Dhabi Commercial Bank, Abu Dhabi – USD 150 Million. http://www.gmrgroup.co.in/corporate/pressreleasedetail.aspx?id=72