MIHAN India Ltd cancels GMR contract for development of Nagpur airport
22 May 2020 01:39:26
Business Bureau :
In a major blow to the city’s progress, MIHAN India Limited has cancelled the contract for development of Nagpur Airport awarded to GMR Infrastructure. GMR Airports Limited (GAL), GMR Infrastructure’s subsidiary, had received the formal letter of award from MIHAN India Ltd, the concessioning authority for the Nagpur Airport, for the development, operations and management of Dr Babasaheb Ambedkar International Airport, Nagpur, which GMR Infrastructure had said in a regulatory filing last year.
Maharashtra Airport Development Company MD Anil Patil told PTI that the contract with the concerned company has been cancelled and the re-tendering process will soon be started for development of Dr Babasaheb Ambedkar International Airport, Nagpur. When contacted, a senior airport official said, the reason for the cancellation of the tender to GMR to develop Dr Babasaheb Ambedkar International Airport, Nagpur was because the State Government was not satisfied with the revenue sharing rate quoted by the GMR in the tender.
The award is at a revenue share of 14.49 per cent of gross revenues. Government is of the view that with the revenue share quoted by the GMR is on lower side and there is scope for enhancing its revenue share. GMR Airports Limited had got a contract in March last from MIHAN India Limited, the concessioning authority, to develop, operate, manage Dr Babasaheb Ambedkar International Airport in Nagpur. Sources in trade and industry said, there is lot of expectation from the Government that it would immediately re-start tendering process for the airport as it would give facelift to the city. The airports in the metros like Mumbai and Bengaluru have been modernised by the Government without wasting time.