Hopeful of securing Navi Mumbai airport bid by Oct: GVK Reddy

Infrastructure conglomerate GVK Group is hopeful of securing the Navi Mumbai airport bid by October, GVK Reddy, Founder and Chairman, says in an interview to CNBC-TV18. Navi Mumbai airport's bidding has been needlessly delayed, he says. He expects a closure by October.The bids have started coming in, he says. However, he adds that GVK, GMR and the Tatas are the only qualified bidders. It is the most difficult airport to develop, says Reddy. Several villages have to be shifted, 2-3 hills have to be demolished and the land has to be leveled to successfully construct an airport on the Navi Mumbai site. He lastly adds that debt reduction and consolidation will be the focus of the group in the coming months.Below is the verbatim transcript of GVK Reddy’s interview to Nithya Balakrishnan on CNBC-TV18. Q: What is the update on Navi Mumbai Airport bid? A: Navi Mumbai should have come 5-10 years back, but it is delayed. Now they have started; I think during this year the bids are there, they have already called. There are only three companies qualified - GVK, GMR and Tata’s. Sometime October-November the bids will be there. We have the first right of refusal. Q: Do you have a plan in place? A: Yes and it is most difficult airport to develop. Most difficult because there are villages, now the government has to shift. There is no land there. There is only creek, black water of the sea. 25-30 meter hills are there, three hills, you have to break all the hills. You will have to fill up in the creek and the total area, about 6-7 meters have to be filled up to bringing in to the same level and to build. Depends if we get it we will build a beautiful airport. Q: All of this does indeed come with a price tag and for the GVK Groups rising debt is a cause of concern. Consolidation and debt management seems to be your key focus. Tell us what steps are you taking to look at reducing debt? A: That is a priority for us, the debt as I said. No fault of us, the projects are in trouble. Now some of the, for instance you must have seen in Fairfax we sold 33 percent above stake in Bangalore. Q: When is that deal likely to conclude? A: This is already done and only we have to get a security clearance. There may be one or two week’s time, they will get it. With a three-four weeks time it will be completed. The same way some of the assets whatever we have and also we would like to dispose and see to whatever the best we can do. Try to reduce the debt to the extent while we will be able to take care.For full interview, watch accompanying videos...