Mumbai airport new int'l terminal to start in Jan: GVK

A: We are in the process of monetising about 8 acres of land with built-up space of about 1.8 billion square feet. We started the process on September 17 and will be completed by January 17, 2014. This will be the first tranche of monetisation, so we will have to wait till January 17 to figure out what amount we have been in a position to raise.

After that, we will be in a position to have a benchmark at least as far as real estate monetisation is concerned.

Q: You had earlier told us that you will be using the initial cash flows to fund further capex. How much are you expecting by way of cash flows itself from the first phase of capex?

A: I think most of the capex is completed. Even the domestic terminal is completed. There are two things that we will have to do after this is completed: dismantle the existing international terminal and there is a pier coming on the right side that has got to be completed and there is a good amount of apron that has got to be completed.

The integrated terminal per se is ready in all respects, but we will be in a position to start the domestic airport only after this pier is completed and the apron space is also completed in all respects.

So we will have to wait for some time for the domestic terminal to start commercial operations whereas the international terminal would start by the middle of January.

Q: Since we last spoke a lot of progress has been made at the cabinet level on the restructuring of premiums. If allowed, will you look to take back the Shivpuri Dewas project?

A: We have given a proposal to National Highways Authority of India (NHAI) on the Shivpuri-Dewas project. For Shivpuri Dewas we were supposed to get 80 percent of land on the appointed date, but unfortunately that did not happen plus the project did not have environmental clearance. We waited for almost 18 months. By the time our contractors had been mobilized and were ready to start, work could not take off due to these issues.

We told NHAI that we had terminated the project as you know, but then NHAI called us for a meeting and we said we are prepared to take the project back and start work, but then there are certain things that NHAI will have to do. We have given a list of about 4-5 items to them that they will have to comply with, otherwise it will be difficult to continue with the project.

They are in the process of evaluating and I am told that the matter is with the government of India also, so once a decision is taken by the government and NHAI, possibly we will relook at that entire proposal and if it makes sense and if the project still continues to be viable we will certainly go for it.

Q: Asset monetisation is the big talking point amongst many of the analysts. Some analysts have projected that your company needs almost Rs 500 crore of equity in the next two years for BOT projects under construction, both in the power and the road segment, however with the current operating cash flow of Rs 200 crore the key question is how will you fund the equity commitments. Is asset monetisation on the cards?

A: I do not understand how you got the Rs 500-crore number. Most of our projects are fully funded. As far as airports are concerned both Mumbai and Bangalore are fully funded. There is no requirement of equity.

As far as Deoli-Kota is concerned the equity that is required is just about Rs 25-30 crore. Bagodara-Vasad will need Rs 150 crore of equity. So these are the two equity requirements in the transportation vertical, which totals up to about Rs 175 crore.