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GMR Airports has set up GMR Cargo and Logistics Ltd as a special purpose vehicle (SPV) to develop and manage the upcoming Cargo City at Indira Gandhi International Airport in New Delhi. The project has been awarded by Delhi International Airport Ltd (DIAL), a subsidiary of GMR. The SPV has been incorporated as a wholly owned subsidiary with a paid-up capital of INR 10,00,00,000. Spread across 50.5 acres, the Cargo City will be developed under a concession agreement valid until 2036, with the option to extend for up to three decades.
GMR Airports has created a new entity named GMR Cargo and Logistics Ltd to execute the Cargo City project at Indira Gandhi International Airport (IGIA) in New Delhi. The company has been incorporated as a wholly owned subsidiary with an initial paid-up share capital of INR 10,00,00,000, divided into 1,00,00,000 equity shares of INR 10 each. This structure ensures that the new venture has a separate identity for focusing entirely on cargo and logistics operations. Advertisement
The Cargo City project has been formally awarded by Delhi International Airport Ltd (DIAL), which is itself a subsidiary of GMR Airports and the operator of IGIA. The concession requires GMR to finance, design, develop, construct, operate, manage, and maintain the facility. The project will cover 50.5 acres of land within IGIA, with an additional 10-acre parcel earmarked for future expansion.
The initial concession period will run until 2036, but it allows for an extension of up to 30 more years, depending on performance and mutual agreement. Under the contract, GMR is required to pay DIAL through a revenue-share arrangement. The agreement also includes a minimum monthly guarantee, which for the first concession period is valued at approximately INR 415.74 crore in total.
The arrangement has been classified as a related-party transaction, and GMR has confirmed that it has been carried out on an arm's-length basis. The company has also stated that the necessary approvals under the SEBI Listing Regulations and the Companies Act, 2013, have been obtained.
On the stock market, shares of GMR Airports were seen trading flat at about INR 88.22 per share on the BSE during afternoon trade. The steady price reflects limited immediate reaction from investors despite the scale of the project.
Source PTI
5th Jun, 2025
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