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GMR Airports Ltd has secured the concession to upgrade, modernise and operate Cargo Terminal 1 at Indira Gandhi International Airport in New Delhi following a competitive bidding process conducted by Delhi International Airport Ltd (DIAL). The development comes nearly ten months after DIAL terminated its cargo concession agreement with Turkish firm Celebi under directions from the civil aviation ministry. According to a regulatory filing, the project will be implemented under a revenue-share arrangement with DIAL and will run until 2036. The company estimated a revenue share payment of around INR 340 crore to DIAL during the first full year of operations. GMR Airports had been handling cargo terminal operations on an interim basis since the termination of the earlier concession agreement, ensuring continuity of services at the country's busiest airport.
GMR Airports Ltd has been awarded the concession to upgrade, modernise, finance, operate and maintain Cargo Terminal 1 at Indira Gandhi International Airport in New Delhi following a competitive bidding process conducted by Delhi International Airport Ltd (DIAL). The development comes nearly ten months after the airport operator terminated its earlier cargo concession agreement with Turkish company Celebi under directions from the civil aviation ministry. Advertisement
The award was confirmed in a regulatory filing by GMR Airports Ltd in the past week. According to the company, it received a Letter of Award from DIAL after being selected as the successful bidder to manage the cargo terminal facility at the national capital's airport. The concession will involve upgrading infrastructure at Cargo Terminal 1 and overseeing its operations and maintenance over the project period.
DIAL operates Indira Gandhi International Airport and functions as a consortium led by the GMR Group. As the airport operator, DIAL is responsible for awarding concessions related to airport infrastructure and services, including cargo handling facilities.
The concession for the cargo terminal has been structured on a revenue-share payment model. Under the arrangement, GMR Airports Ltd will share a portion of the terminal's revenue with DIAL. The concession period will extend until 2036, and the company has estimated a revenue share payment of approximately INR 340 crore to DIAL during the first full year of operations.
The regulatory filing did not disclose additional financial details related to the project. However, the company stated that the transaction qualifies as a related-party arrangement conducted on an arm's-length basis.
The change in cargo terminal management follows the termination of the earlier concession agreement with Celebi. Acting on a directive from the Ministry of Civil Aviation, DIAL ended the contract with the Turkish operator in May 2025. After the termination, GMR Airports Ltd was assigned responsibility for the cargo terminal operations on an interim basis to ensure continuity in cargo handling services at the airport.
The competitive bidding process for awarding a long-term concession for the facility was subsequently initiated in the past year. According to the company's filing, the bidding exercise concluded with GMR Airports Ltd emerging as the successful bidder for the project.
Cargo infrastructure plays a significant role in the functioning of Indira Gandhi International Airport, which is among the busiest aviation hubs in the country for both passenger and freight movement. The terminal handles a wide range of cargo shipments including pharmaceuticals, electronics, perishables and e-commerce consignments moving through domestic and international supply chains.
In its filing, GMR Airports Ltd stated that the promoter group and associated companies do not have any interest in the transaction beyond their indirect shareholding in both GMR Airports Ltd and DIAL.
Shares of GMR Airports Ltd declined by 4.29 per cent to close at INR 89.25 on the BSE during the trading session when the announcement was made, while the benchmark Sensex index recorded a decline of 1.93 per cent.
Source - PTI
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