Financial Daily from THE HINDU group of publications
Thursday, Oct 24, 2002
Financial Daily from THE HINDU group of publications Thursday, Oct 24, 2002 |
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Logistics
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Infrastructure Shamshabad airport project may suffer further delays Our Bureau
HYDERABAD, Oct. 23 THE Rs 1,200 crore, greenfield Hyderabad International Airport project at Shamshabad is likely to be delayed as various issues relating to the project are yet to be sorted out. The Rs 2,500-crore GMR Group and the Malaysian Airport Holding Berhard combine was selected as preferred bidder for the project on a build, operate and own (BOO) basis by the State Government. Some of the major issues being pursued by the State Government are the delay in the proposed amendment to the Airports Authority Act by Parliament, environmental hurdles in terms of the Government Order No: 111 and the objections raised by the Defence Authorities in view of key defence establishments located in and around Hyderabad. Owing to these constraints, the project may get delayed and uncertainty still prevails over the zero date, according to the GMR Group Managing Director, Mr B.V. Nageswara Rao. Responding to the queries of newspersons here on Wednesday, he said the group expected to execute the project in 36 months from the zero date. Mr Rao was here to announce the details of the changing vision of the GMR Group towards infrastructure, financial services and information technology. Admitting that delays may impact the cost of the project, he, however, said the project outlay might even go southwards in view of the falling interest rate regime since the project was to be executed with a debt-equity ratio of 1:3. According to Mr Rao, the interest component would be substantial in view the 15-year tenure of BOO. Pending approvals, the GMR Group is currently working out details pertaining to the engineering procurement and construction contracts and designing, for which two companies were short-listed recently. According to the GMR Director, Mr K. Narayana Rao, works for the two highway projects of the company involving an outlay of Rs 800 crore - the four-lane highway between Tuni-Anakapalli on National Highway-5 in Andhra Pradesh for a distance of 60 km and another between Tambaram-Tindivanam on NH-45 in Tamil Nadu measuring 93 km - had already begun and was expected to be completed by May 2004. The roads project is being executed in alliance with the Malaysian infrastructure major - United Engineers (Malaysia) Berhard.
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