GMR Airports has taken a significant step toward expanding cargo infrastructure at Delhi’s Indira Gandhi International Airport (IGIA). The company’s subsidiary, GMR Cargo & Logistics Ltd (GCLL), has secured a ₹750 crore term loan from Axis Bank to support the development of the ambitious Cargo City project at the airport.
What Is the Cargo City Project?
The Cargo City is envisioned as a modern, high-capacity logistics hub designed to streamline cargo operations at IGIA—one of India’s busiest aviation gateways.
Key highlights include: Development over 50.5 acres within the airport zone Advanced cargo handling facilities, warehousing, and integrated logistics solutions. A long-term concession awarded to GCLL, running until 2036, with an option to extend by an additional 30 years.
A revenue-sharing arrangement with Delhi International Airport Limited (DIAL), including a minimum monthly guarantee. Once operational, Cargo City is expected to significantly boost Delhi Airport’s cargo handling capacity, aligning with India’s growing trade and logistics ecosystem. Loan Structure and GMR’s Commitment To secure the ₹750 crore financing, GMR Airports has provided:
Sponsor Support Undertaking (SSU)
GMR has agreed to keep any subordinated loans to GCLL truly subordinate to Axis Bank’s loan facility. Additionally, the company will provide funds if: There is a cost overrun, or GCLL faces a shortfall in repaying the Axis Bank loan. The SSU will remain valid through the construction phase of Phase-1 and one year of operations. Share Pledge / Non-Disposal Undertaking GMR Airports has also pledged 51% of its shareholding in GCLL to Axis BankThis enhances the bank’s security while enabling GMR to accelerate development activities.
Boost to India’s Logistics Secto
The Cargo City will modernize cargo movement, reduce processing delays, and support India’s rising export-import volumes. It strengthens Delhi’s position as a key cargo gateway in South Asia. Increased Non-Aero Revenue for GMR With airports seeking diversified revenue, large cargo facilities offer stable, long-term earnings beyond passenger traffic.
Economic Impact
The development is expected to create: New logistics employment Opportunities for freight operators Better infrastructure for e-commerce, pharma, perishables, electronics, and high-value cargo segments
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Looking Ahead
Although the loan covers a substantial portion of the project’s funding needs, GMR will require additional investments as the Cargo City progresses. Execution timelines, regulatory clearances, and cost management will be crucial for timely delivery However, with Axis Bank’s support and GMR’s strong track record in airport development, the project is poised to become a major milestone in India’s logistics infrastructure journey.
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