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C.R. Sukumar

As a first step, the company proposes to acquire aircraft for own use as well as for chartering services, the sources told Business Line.

Hyderabad , Jan 22

EVEN as the Indian civil aviation sector has been witnessing major consolidation moves in the recent past, GMR Industries Ltd, part of the Rs 2,500-crore group, is considering a proposal to enter the civil aviation segment with own aircraft.

A GMR group entity - Hyderabad International Airport Ltd (HIAL) - has recently announced financial closure and commenced project works for the Greenfield International Airport at Hyderabad. The project is being implemented on a build, operate and own (BOO) basis in association with Malaysia's leading airport management company - Malaysian Airports Holding Berhad.

GMR management intends to exploit the emerging opportunities in the transport sector. "Accordingly, the company is exploring various options such as shipping, aviation and container services," according to highly placed company sources.

Currently, the GMR Group is into infrastructure, transportation, power and manufacturing. Leveraging the public-private partnership model, the group has been developing and managing infrastructure projects over the last few years.

"Now, as a first step to exploit the opportunities in the transportation sector, the company proposes to acquire aircraft for own use as well as for chartering services. The management plans to consider foray into shipping and container services subsequently," the sources told Business Line.

GMR Industries board has recently approved a resolution to this effect and has also decided to seek the approval of shareholders through postal ballot. The company proposes to obtain required licences from the Civil Aviation Department, Airports Authority of India and other statutory approvals, permissions from the Central and State Government Departments to carry on the business of chartered airline business, sources said.

HIAL has also recently formed a consortium and bid for the restructuring and modernisation of the Delhi and Mumbai airports, with Fraport AG (Europe's largest cargo hub and second largest passenger airport), Frankfurt Airport Services Worldwide (owners and managers of Frankfurt Airport) and the India Development Fund (an IDF AMC managed fund).

"The consortium's expression of interest for Delhi airport modernisation has been accepted and it is now working on submitting a proposal that would detail its capabilities in developing the project," sources added.

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