IndiaCatalog.com
India News
Search Web Directory
News Home
GMR, Tatas to stay out of the Rs 16,000 crore Navi Mumbai airport bid
Posted on 4th January 2016
The GMR Group and Tata Realty will not bid for the Navi Mumbai airport project, citing “onerous” bid conditions, among other reasons. “We are not bidding on account of project implementation and execution challenges as well as onerous timelines and bid conditions,” a GMR Group spokesperson said.

This means there will be only two companies — GVK-led Mumbai International Airport (MIAL) and Hiranandani Developers-Zurich Airport consortium — in the race for the Rs 16,000-crore project.

This is the second recent instance of qualified companies not participating in financial bids. Last August, GVK Group and Hiranandani Developers did not submit financial offers for the Goa airport and the GMR Group won the bid.

Financial bids for the much-delayed project will open next Monday. The Navi Mumbai airport will be developed through a public-private partnership and the planning authority, City and Industrial Development Corporation (Cidco), will hold 26% stake in the project. MIAL, which operates the airport, has the right of first refusal and it can revise its bid if it is 10% below the highest offer.

While the GVK Group declined to comment, sources at Tata Realty said the company would not participate in the bids unless there was a revision of bid terms or submission deadlines.

It could not ascertain whether the Hiranandani Group will participate in the bid.

Cidco Vice-Chairperson Bhushan Gagrani said the agency was expecting financial offers from all the companies. In case only one company submits bid, the state Cabinet will have to take a decision on the award of the bid.

In their submission to the government last month, the GMR Group pointed out the challenges in pre-development work, delay in land acquisition and rehabilitation, and absence of stage-II environmental clearance as key concerns for meeting project deadlines. GMR also raised issues regarding conflict of interest in award of pre-development work. Tata Realty is said to have raised concerns in a letter to the government.

There is a conflict of interest situation, as the agencies appointed for two pre-development works’ packages are associates of MIAL, GMR Airport’s President Sidharath Kapur wrote in a letter to the Maharashtra government last month.

The GMR Group runs Delhi and Hyderabad airports. Last August, it won the bid for a second airport in Goa and has participated in a dozen airport bids around the world. The group has a total debt of Rs 49,000 crore and it is divesting stakes in its road and energy projects to pare down its debt. The group’s financials, too, have been impacted due to stress in their road and energy business.

In his letter, Kapur also raised the issue of capping Cidco’s equity contribution at Rs 430 crore irrespective of the project cost, saying it will complicate the financing of project and impact long-term viability. The company has also raised issues regarding the terms of repayment of soft loan for the pre-development work. Funds spent by Cidco on pre-development work will be deemed as soft loan according to bid conditions.

The main issue of the bidders pertains to project timeline and bidders think the completion date of December 2019 is unrealistic, a government official said. All the issues that bidders have raised were discussed with them before finalisation of the concession agreement, the official added.

The Maharashtra government’s project monitoring and implementation committee will have to take a call whether to amend the bid conditions and that would mean further delays in the project.

Related Companies: GMR Group   

Other Latest News
Infosys completes acquisition of 75 pc stake in ABN AMRO Bank subsidiary Stater
Posted on 24th May 2019
New Delhi: IT services major Infosys on Friday said it has completed the acquisition of 75 per cent shareholding in ABN AMRO Bank's wholly-owned Stater NV.

In March, the country's second largest IT services firm had said it will acquire 75 per cent stake in Stater for 127.5 million euros (about Rs 989 crore). ABN AMRO continues to hold the remaining 25 per cent.


OVL FY19 net profit jumps 71 pc on rise in oil production
Posted on 24th May 2019
New Delhi: ONGC Videsh Ltd, the overseas investment arm of state-owned Oil and Natural Gas Corp (ONGC), on Friday reported a 71 per cent jump in its 2018-19 fiscal year net profit on the back of a spike in crude oil production.

Consolidated net profit in April 2018 to March 2019 period at Rs 1,682 crore was 71.4 per cent higher than Rs 981 crore net profit in the previous financial year, the company said in a statement here.


SBI to engage with 1 lakh customers on Tuesday to resolve concerns
Posted on 24th May 2019
The country's largest lender SBI will conduct a customer outreach programme next week to address their queries and seek suggestions to improve services.

The 'Mega Customer Meet', to be held on Tuesday, is expected to engage with 1 lakh bank customers across 500 locations through 17 local head offices across the country.


Air India sale: EY back on job, EoI to be ready soon
Posted on 24th May 2019
The government has put top consultancy firm EY to work for divesting its stake in flag carrier Air India and "quickly" issue expression of interest (EoI).

"EY continues to be the transaction advisor for the sale of Air India. We have been directed to close the accounts for FY 2018-19 and provide updated data for EoI to take the disinvestment process forward," said a senior Air India official.


Ashok Leyland reports 12% decline in Q4 net profit at Rs 652.99 cr
Posted on 24th May 2019
Commercial vehicle major Ashok Leyland Friday reported 12.12 per cent decline in net profit at Rs 652.99 crore for March quarter, 2018-19.

The company posted a profit of Rs 743.12 crore for the same period of 2017-18.


» Post a FREE Classified Advertisement
Inviting Real Estate Agents, Job Placements Agents, Educational Institutes, Software Service Providers, Real Estate Builders, Marriage Bureaus, Travel Agents, Restaurant Owners, Health & Fitness Centers and other Local Businesses to Post a FREE Classified Advertisement on Cootera.com Classifieds Website.
Jobs in India India Real Estate Automobiles Matrimonials Beauty & Fitness

Add a comment for GMR, Tatas to stay out of the Rs 16,000 crore Navi Mumbai airport bid
Please only use this form to enter comments on the above company. All comments are reviewed before they are displayed on the web site. Not all comments may be displayed. Check back with us to see if your comments have been displayed.
If you want us to email the comments posted by users, please Subscribe by email
Name*
Comments*
Security Code*
 

Be the first person to write a business review for GMR, Tatas to stay out of the Rs 16,000 crore Navi Mumbai airport bid

Most Read News

Infosys to allocate up to 50 mn shares to incentivise staff

What Imran Khan should do to prevent Pakistan from FATF blacklisting

Amazon's $575 mn investment delivers a $1 bn blow to food delivery sector

Ashok Leyland ready to ride on Elon Musk's India dream

Reliance tops IOC in sales

More India News

  India Web Directory
Business Profiles
Automotive Directory
IT/ITES/BPO Directory
Hotel Directory
Health Directory
Business Directory
Gems & Jewellery
Education Directory
Real Estate Directory
Agriculture Directory
Logistics Directory
Yellow Pages
NRI Guide
Photo Galleries
Global Web Directory
*** FREE India Classifieds
Order Premium Listings
Submit a Site
Business Reviews
Home
About us
Link to us
Advertise
Contact us
Google Search Keywords: India Catalog, IndiaCatalog, India Web Directory
    © 1999 - 2019 IndiaCatalog.com
    All Rights Reserved
Privacy Statement