Comments
Shares of GMR Infrastructure surged by over 13 per cent following a favourable order from the Supreme Court which allowed Delhi International Airport to use the land within the airport area for commercial purposes.
In fact, at one point, it gained up to 19 per cent before giving up some of its gains to close about 13 per cent up. The order enables the company to monetise land estimated to be about 168 acres.
The apex court upheld an order of the Delhi High Court passed in April that allows existing airports managed under public-private partnership (PPP) to make use of the available land for commercial purposes.
The issue had gone to court after the National Civil Aviation Policy, 2016, in force from June 2016, restricted existing airports, such as Delhi and Mumbai, from using the land available at the airports for commercial purposes.
There is huge latent demand to develop infrastructure in the land adjacent to airports as it has potential for commercial use. The policy had come in the way of development of such land. The GVK group which manages Mumbai Airport too would gain by this order.
The move is expected to be a major positive for GMR Infra, which has divested a number of projects to bring down its debt.
Shares of GMR Infra closed at ₹18.60, up 13.41 per cent, on the BSE.
Comments
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.