GVK Power and Infrastructure (GVKPIL) which runs the airports at Mumbai and Bangalore, will develop international airports at Bali and Java in Indonesia. As per a report in the Economic Times, the company signed a memorandum of understanding (MoU) with the Indonesian government for execution of these projects right from conception to design to operating and managing these airports with an exclusivity clause.
Bali's current international airport is in its capital Denpasar, and is the third largest airport in Bali, GVK has proposed to develop an airport in the northern part of Bali.
This is the company's first successful agreement with a foreign government for an international project after its failed attempt for modernisation and upgradation of the Male airport in Maldives last year.
GV Krishna Reddy, chairman, GVKPIL, said, "The Indonesian airport projects are strategically the next move for GVK. Java and Bali are growing very fast. We have to get a feasibility study done for traffic, investment and terms to be submitted to the Indonesian government".
The group will pump in close to $3billion to $4 billion in the development of these greenfield projects. GVKPIL will be partnering for these projects with Indonesian government's special purpose vehicle for airport development and a board for foreign investments.
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