GVK Power to invest Rs4,500 crore to modernise Bangalore airport

09 Mar 2010

GVK Power and Infrastructure Ltd, a leading infrastructure developer, plans to invest Rs4,000-4,500 crore to modernise and expand the Bangalore International Airport Ltd (BIAL).

The Mint,  citing GVK Power's chairman GV Krishna Reddy, said that the company plans to build a new terminal building and runway as well as infuse new management to Bangalore airport for fast-tracking the modernisation and expansion programme.

The Hyderabad-based company also plans to acquire Siemens Project Ventures GmbH's 40-per cent stake in BIAL.

In November 2009, GVK Airport Developers Pvt Ltd, a unit of GVK Power & Infrastructure Ltd, acquired a 12-per cent stake in BIAL for Rs485 crore. (See: GVK buys 12 per cent in Bangalore airport from Swiss company)

The stake was purchased from Flughafen Zuerich AG, after entering into a strategic pact with Unique Airports Worlwide AG. which operates Zurich Airport, for new airport projects in the Indian sub-continent.

A month later, it acquired an additional 17-per cent stake for Rs686 crore from L&T Infrastructure Development Projects Ltd, taking its total stake in BIAL to 29 per cent. (See: GVK acquires L&T's 17 per cent stake in Bangalore airport for Rs686 crore)