GMR Cargo and Logistics (GCLL), a wholly owned subsidiary of GMR Airports, has secured a long-term rupee loan of up to ₹750 crore from Axis Bank to support the development of a key portion of the upcoming Cargo City project at Delhi International Airport.
In a regulatory filing dated November 26, the company confirmed that the funding will accelerate ongoing construction and help operationalise its recently signed concession agreement with Delhi International Airport Ltd. (DIAL), inked on September 26, 2025, for the development, maintenance and operation of Cargo City.
To secure the loan facility, GMR Airports has extended a comprehensive security package. This includes a Sponsor Support Undertaking (SSU) and pledge or non-disposal undertaking (NDU) covering 51% of GCLL’s shares in favour of Axis Bank. The SSU will remain effective throughout the construction phase of Cargo City Phase 1 and for one year of operations, unless mutually revised.
The agreement also incorporates stringent financial safeguards to protect the lender. GMR Airports has committed that all existing and future subordinated loans to GCLL will remain junior to the Axis Bank facility. Additionally, the parent company must inject funds into GCLL in specific circumstances, such as cost overruns, repayment shortfalls, or any requirement to replenish the Debt Service Reserve Account (DSRA) if GCLL is unable to do so.
The fresh capital injection is expected to provide crucial momentum to the Cargo City project, which aims to significantly enhance Delhi’s air cargo infrastructure and strengthen India’s position as a regional logistics hub.
