: Bangalore-based infrastructure developer GMR is in talks with aircraft component manufacturers such as Honeywell and Safran to set up a components assembly plant in the country.
The company plans to invest $60 million for the proposed JV that will assemble airplane components at the aviation SEZ in Hyderabad, a GMR Group official said. GMR Hyderabad International Airport (GHIAL) vice-president of planning and strategic initiatives D Ravindran confirmed the development. "We have received proposals from several avionics manufacturers and currently evaluating them," he said.
"The equity structure of the new company is yet to be finalised. However, it will depend upon partner's proposal," he said. GHIAL, a majority-owned subsidiary of GMR Group, has already formed a JV with MAS Aerospace Engineering of Malaysia to set up a facility for airframe maintenance, repair and overhaul (MRO) at the SEZ. The two are equal partners in the company.
GHIAL has set up two airport-based SEZs in Hyderabad, where it plans to undertake high-end aero engineering activities. About 250 acres of land, adjacent to the new Hyderabad airfield, have been designated as SEZs. GMR Group holds 63% in the airport company. While the Andhra Pradesh government and the Airports Authority of India (AAI) own 13% each in GHIAL, the remaining 11% is held by Malaysia Airports Holdings Berhad (MAHB).
Hyderabad is fast emerging as an aviation hub. The average traffic movement at the Hyderabad airport is about 218 flights a day. The airport handles nearly 18,000 passengers on a daily basis. "Going forward, international as well as domestic carriers would make Hyderabad their hub in South-East Asia.
The new Hyderabad airport has several advantages over other airports in the region. While the passenger-handling capacity is in excess of the current demand, the state government provides very friendly business environment," Mr Ravindran said.