News Column

GMR GETS NOD TO BUY OUT STAKE IN MRO UNIT

August 5, 2014



The Board of Approvals under the Ministry of Commerce, Government of India, has given its conditional approval to a proposal of the GMR Group of Bangalore to buy out the 50 percent stake owned by its partner, Malaysian Aerospace Engineering (MAE), in an aircraft maintenance repair and overhaul (MRO) unit. The MRO unit, MAS GMR Aerospace Engineering Company Limited (MGAECL), was set up at a cost of Rs350 crore at a Special Economic Zone (SEZ) near the Hyderabad International Airport. As part of conditions to be fulfilled, GMR will have to ensure seamless continuity of the SEZ activities with unaltered responsibilities and obligations for the altered co-developer entity. MAE had expressed is inability to infuse more funds into the loss making MRO facility. MGAECL is a fully-owned subsidiary of MAS GMR Aerospace Engineering Company, which itself is a joint venture between MAE and GMR Hyderabad International Airport (GHIAL). MGAECL started commercial operations in Nov 2011 and had incurred cumulative losses of Rs240.30 crore as on 31 Mar 2014.


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Source: Indian Business Insight


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