KPMG to chalk out fund-raising plan for AAI

Written by Shaheen Mansuri | Hyderabad | Updated: Mar 5 2010, 05:38am hrs
Airports Authority of India (AAI) has roped in consultancy services firm KPMG to draw up a fund-raising plan. AAI is planning to raise over Rs 5,000 crore, although this can be done only after according itself a company status by amending the AAI Act. AAI owns and manages five international airports, 87 domestic airports and 28 civil enclaves at defence airfields and provides air traffic services over the entire Indian airspace and adjoining oceanic areas. Most of the funds AAI will raise will be used to upgrade 35 non-metro airports, whose upgradation has been shelved for the past two years due to unavailability of funds. In all, the organisation owns 120 airports, of which only 14 have shown some marginal profits in FY08-09.

AAI plans to spend about Rs 12,434.34 crore during the 11th Five Year Plan (2007-2012) for the development of airport infrastructure in the country. Some projects includeAjmer, Chandigarh, Dehradun, Mount Abu, Bhubaneswar, Cooch Behar, Gaya, Agartala, Barapani (Shillong), Guwahati, Ahmedabad and Akola. Meanwhile, VP Agrawal, chairman, AAI, confirmed to FE that last week, the authority appointed KPMG to help it raise funds.

The funds would be used to accelerate the integrated development, expansion and modernisation of the operational terminal and cargo facilities at the airports in the country, conforming to international standards.