GMR nears aero SEZ deal with AgustaWestland

As part of efforts to find an anchor client for its aero special economic zone (SEZ) at the international airport in Hyderabad, infrastructure major GMR is said to be in advanced talks with helicopter maker AgustaWestland.

GMR Infra, through its subsidiary GMR Hyderabad International Airport Ltd (GHIAL), has been working on a plan to develop an aerospace SEZ in about 250 acres on the sprawling 5,500-acre airport campus.

While GMR has already roped in a partner for setting up of a maintenance, repair and overhaul (MRO) facility, it has been talking to aircraft makers for setting up a unit at the SEZ to catapult the activity to higher skill levels.

According to sources, AgustaWestland has evinced interest in setting up of the unit since the Italy-based company too has been scouting for a location to set up its helicopter manufacture unit.

“AgustaWestland has been evaluating two to three locations in India. The key difference between the GMR SEZ and other locations is the airport. Since, the GMR SEZ is within the airport premises, there are certain benefits being perceived by the Italian company.

The talks are at an advanced stage,” a source tracking the developments said.

In fact, it is said that the Italian helicopter major is also working on the approval formalities, including approaching the Foreign Investment Promotion Board for seeking permission to commit the investment at the SEZ.

The investment will in all probability be routed through Indian Rotorcraft Ltd, a joint venture between the Tatas and AgustaWestland. If all goes well, the company will manufacture an eight-seat helicopter from the GMR SEZ.

In fact, GMR too has been working on a different model to monetise the property that is available at the airport. Unlike in the Delhi airport, GMR is said to be keen on picking up equity in the projects that come up at the airport SEZ in lieu of the land that is allotted for the project.

For the helicopter project, it is estimated that about 20 acres would be allocated. The project is expected to take shape some time in 2011.