GMR Cargo and Logistics (GCLL), a fully owned subsidiary of GMR Airports, announced on November 26 that it has successfully raised a long-term rupee loan of up to ₹750 crore from Axis Bank. According to the company’s regulatory filing, the newly acquired funds are for the development of a portion of the cargo city project at Delhi International Airport.
To secure the facility, GMR Airports has provided a comprehensive security structure. The company has issued a sponsor support undertaking (SSU) and created a pledge or non-disposal undertaking (NDU), or a combination of both covering 51% of GCLL shares held by the company in favor of Axis Bank.
Under the terms of the agreement, the SSU will remain valid throughout the construction period of Phase 1 of the project, extending through one year of operations, unless alternative terms are mutually agreed upon with the lender.
The agreement outlines strict financial protocols to mitigate risk for the lender. Through the SSU, GMR Airports has undertaken that any subordinated loans currently provided or to be provided to GCLL will remain subordinate to the Axis Bank facility.
Furthermore, the parent company is obligated to infuse additional funds into GCLL in specific scenarios, including cost overruns during Phase 1 or any shortfall in repayment capabilities. The company must also replenish or top-up the Debt Service Reserve Account (DSRA) should GCLL fail to meet these obligations.
On September 26, 2025, GCLL signed a concession agreement with Delhi International Airport (DIAL) regarding the development, maintenance, and operation of the Cargo City. This latest infusion of capital from Axis Bank provides the necessary financial runway to
operationalise the agreement and accelerate the development of Delhi’s air cargo capabilities.
