Chillin' out till it needs to be funded
Glad to feature another ‘almost’ PSU L&T in the headlines as news comes of A M Naik led L&T entering bids for redevelopment of Airports with GVK, GMR and others in Oman, Abu Dhabi, London’s Macquarie owned Gatwick Airport and Maldives.
GMR has already bid for Istanbul. GVK is bidding for Maldives and GMR is bidding for another Macquarie Investment in Gatwick. The coming together of Macquarie and GMR Infra/GMR Energy would mean big things for India Infrastructure investments.
Reliance has in the meantime picked up a 30% stake in old horse Gopinath’s 4PL logistics venture in Deccan 360. Indian logistics sector is currently a mere $600 million almost 1% of its counterpart in the US, as we remain labour intensive and focused on cost controls of the variety that preclude big capital investments from taking off . GVK has also been purchased Zurich and L&T stake in the Bangalore International Airport in the mean time, cutting the monopoly of Hyderabad and Delhi Airport owner GMR in the sector. GMR Energy has till now invested in 16 power plants of 200-250 MW capacity and has recently sold a stake to Temasek of the Govt of Singapore. It is thus divesting its stakes in the GMR groups other ventures in 3 toll highways and the Delhi Airport, consolidating its structure for larger investment interests in the PPP scenario developing to fund India’s $2.5 Infrastructure hunger.