GMR Infra looks to sell land, non-core assets

New Delhi: GMR Infrastructure is working on disinvestment of non-core assets including land and hopes to yield significant value even from 50 per cent of land monetization, according to a document. The airport-to-port conglomerate in an investor presentation said land at strategic industrial locations will benefit from the possible manufacturing dislocation from China.

"Plan is to divest large part of other assets identified as non-core divestment initiative," the document said and noted that it has 10,500 acres of port and industrial land and even 50 per cent land monetization could yield significant value.

About its Kakinada Special Investment Region (SIR) in Andhra Pradesh, the group said that it is in discussion with a large number of clients for monetization of land. "Government of Andhra Pradesh signed MoUs with Haldia Petrochemicals Ltd to set up a refinery cum petrochem project in 2,500 acres and with HPCL-GAIL consortium for petrochem complex in 2,000 acres land," it said and added in addition pact has been inked with a stainless steel manufacturer for 500 acres and an Australian lithium refinery for 100 acres."

The port-based Kakinada SIR in the Krishna-Godavari basin has plans for an all weather multi-purpose deepwater port, a logistics park, a petrochemicals cluster and an eco-industrial park, it said.

As per the document, 4,650 acres area there has been notified as SEZs and utility and environment approvals are in place.

In Kakinada SEZ in Andhra Pradesh, however, the company has continued its efforts for various government approvals and technical studies and added that demand for industrial parks is expected to revive to pre-Covid-19 levels.

The group said Infrastructure has not been much affected in the region due to Covid-19 as the company was able to re-mobilise and commence work quickly as the workers hailed from neighbouring areas and Hosur.

About Krishnagiri SIR (Tamil Nadu), the company said Infrastructure development in 275 acres is in progress with all approvals in place.

It said it is leveraging locational advantage to create cluster in aerospace, automobile, logistics, engineering and electronics sectors besides setting up a special investment region in joint venture with Tamil Nadu Industrial Development Corporation (TIDCO).

The infra major said while State Industries Promotion Corporation of Tamil Nadu (SIPCOT) will acquire 500 acre for their Industrial park, it has leased 20 acre to Toyota Boshuku for their manufacturing unit.

GMR Infrastructure Limited's consolidated net loss for the quarter ended March 31 narrowed to Rs 1,126.82 crore, as against Rs 2,341.24 crore loss in the January-March period in FY19.