The Hindu : Front Page : Nod for modernisation of airports

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Friday, Aug 15, 2008
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Nod for modernisation of airports

Special Correspondent

NEW DELHI: The Centre on Friday gave its approval to the modernisation of international airports in Chennai and Kolkata.

The State-run Airports Authority of India (AAI) is likely to complete the work in three years, as desired by the DMK-led government in Tamil Nadu and the Left Front government in West Bengal.

This was announced by Civil Aviation Minister Praful Patel after the Cabinet Committee on Economic Affairs (CCEA) approved the projects here on Thursday.

While the Kolkata airport would be developed at an estimated cost of Rs 1,942.51 crore, the Chennai airport would cost Rs. 1,808 crore. The Kolkata project would be completed within 30 months of the award of the contract and the one in Chennai in 26 months.

The renovated airports would be on a par with those in Delhi and Mumbai where modernisation is being done through public-private partnership. The issue of additional land for their expansion has been sorted out by both the State governments, he said.

The modernisation plans included new domestic and international terminal buildings, extension of secondary runways and building of taxiways. Mr. Patel said the initial proposal was to fund 80 per cent of costs for both projects through the internal accruals of the AAI.

As per the proposal, AAI would pump in Rs 1,554 crore or 80 per cent of the Kolkata project cost through its own resources and Rs 1,446.4 crore (80 per cent) for the Chennai airport.

The remaining amount would be raised through commercial borrowings. However, the Minister said the financial position of the AAI was strong enough to fund the entire amount.

Asked whether AAI would levy User Development Fee (UDF) once these two major metro airports were modernised as was being done by private operators, Mr. Patel said the AAI had to be run in a commercially viable manner. Therefore, the government could consider the matter at a later stage.

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