AAI to raise funds from market to upgrade non-metro airports

New Delhi, Nov 17 | Updated: Nov 18 2005, 05:30am hrs
The Airports Authority of India (AAI) plans to raise funds from the capital market for funding the modernisation of about 30 non-metro airports across the country, civil aviation secretary Ajay Prasad said at the second Indo-US economic summit here on Thursday.

According to him, the proposal has been cleared by the civil aviation ministry. Consultants have been appointed and a financial advisor is working with the government to work on it.

The estimated cost of the development of 30 airports is around Rs 40,000 crore. According to Mr Prasad, AAI is currently studying various models for development of these airports and would enter into joint ventures with private parties. The equity ratio would be decided on a case-to-case basis for each airport and it could even be that the entire work was handled by the AAI and the state agencies at those airports where private parties were not interested, he said.

The civil aviation secretary said the techno-economic consultants would prepare separate reports for each of the 30 airports and their modernisation plans. u

While work has already begun at Srinagar, Amritsar and Ahmedabad, it would be taken up at Udaipur, Dibrugarh and Thiruvananthapuram soon.

Maintaining that the modernisation of Chennai and Kolkata airports would be taken up soon, he said the process for Delhi and Mumbai was going on track and we will finalise the arrangements and hand over these two airports to the joint venture companies by the year-end.

He said the first phase of modernisation of the Delhi airport would have to be completed well before 2010 when the Commonwealth Games are scheduled.