GMR, Terna sign agreement for new airport in Greece; to invest 500 mn euros

GMR Infrastructure on Friday said its subsidiary GMR Airports and its Greek partner Terna Group have signed a concession agreement for construction of the new international airport in Greece's island Crete.

The consortium intends to invest over EUR 500 million (approx Rs 4,034.28 crore) for development of the new airport, GMR Infrastructure said in a regulatory filing.

The concession agreement is for design, construction, financing, operation and maintenance of new international airport of Heraklion at Crete, Greece.

The concession period for the project is 35 years including phase 1 construction of five years, the company added.

GMR Infra said the entire project will be funded through a mix of equity, accruals from the existing airport, and financial grant being provided by the Greece government.

"Debt is not required in this project," the company added.

This is GMR Group's first foray in the European Union (EU) region and the company said it is looking forward to expanding its footprint in the EU.

Shares of GMR Infra were trading 0.93 per cent higher at Rs 16.25 apiece on BSE.


Dear Reader,


Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.

We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

Business Standard is now on Telegram.
For insightful reports and views on business, markets, politics and other issues, subscribe to our official Telegram channel