Shares of GVK Power and Infrastructure rose 17% to touch a 52-week high of Rs 7.70 on Tuesday after it bagged the contract for the upcoming Navi Mumbai International Airport. GVK Power & Infrastructure shares were also trading in large volumes. Around 10 am, as many as 59.5 lakh stocks had changed hands, reported NDTV. Shares of GMR Infrastructure, which lost the contract on Monday, dropped more than 4%.
The two companies had on Monday submitted their bids to City and Industrial and Development Corporation. While GVK runs the Mumbai airport, GMR Infrastructure, takes care of the country’s largest airport in Delhi. “While GMR offered 10.44% of revenue share, GVK has offered 12.60% of revenue share, thus winning the bid,” the authorities said in a statement.
The Maharashtra government had sanctioned the Rs 16,000-crore Navi Mumbai airport project in 2007 but it got entangled in environmental concerns and land acquisition issues. Cidco has now set a May 2020 deadline to get the airport ready. But experts believe that the project may face a few more hurdles.
“The project is likely to see challenges in terms of funds. And keeping in mind the volatile nature of the aviation sector, a major surge in international crude prices would have an impact on the timeline,” an executive with an aviation think tank told Hindustan Times.