GMR Group plans realty growth in Hyderabad

25 March 2008

New Delhi: The GMR Group, a global infrastructure major, is diversifying its business with a  Rs3,300-crore deal in the real estate sector.

The group, which  built India's first greenfield airport, the Rajiv Gandhi International Airport (RGIA) at Hyderabad, has sought the government's permission to develop the 60 acres available at the old airport, located in the heart of the southern city.

The old airport occupies about 790 acres out of which 60 acres could become available once all commercial operations shift to the new airport.

The company, with the help of the Andhra Pradesh state government is seeking permission from the centre to acquire the airport land on lease, which may fetch a price of about Rs3,300 crore, according to real estate consulting firm CB Richard Ellis.

The group is also pursuing the project with urban development ministry and the Planning Commission.

''GMR Group had earlier sent us a formal proposal asking for airport land which they intend to develop commercially, besides building a rail station for the proposed high-speed train service. They have sought the land on lease. But we are yet to look into their plans,'' said a senior official in the ministry of civil aviation.